May has been an interesting month for the property market. There’s speculation on how a General Election may affect movers’ intentions in England. In Scotland, there’s rumour of an urgent review of The Housing (Scotland) Bill.
We’re more concerned with tangible facts and figures. Rightmove’s House Price Index for May is a great place to start. Its headline was another increase in asking prices.
Record asking prices noted
The portal found the average price for newly marketed homes has set a new record of £375,131. This is an increase of 0.8%, when compared to April – equivalent to £2,807 extra. Average asking prices are now 0.6% more than at the same point in 2023.
For speed, price realistically
The market is still price sensitive, however. Rightmove says properties priced competitively from the start sell more quickly. It takes, on average, 32 days for a sale to be agreed if the property is priced realistically from day one. Conversely, homes for sale that need a price reduction before a buyer is found take an average of 112 days to sell.
The property market does head into summer in good health. Rightmove’s index showed an increase in the number of sales completed in the first four months of 2024. This is up 17% when compared to 2023. There has also been a 12% rise in the number of new sellers.
Nationwide also released some interesting statistics in May. Its analysis looked at average house price growth between December 2018 and December 2023, in relation to local authorities and area descriptions. It found average house prices had risen by 22% in predominantly rural areas; by 19% in urban locations with significant rural areas, and by 17% in predominantly urban areas.
In terms of the best performing local authorities in 2023, four Scottish authorities made the top 10 (Eilean Siar, East Renfrewshire, Midlothian and East Dunbartonshire). Prices had risen by an average of 8.5% in these authorities during the five year period. Authorities in the North East, the North West, the South East and the South West completed the top 10.
The demand for rental property shows no sign of waning as we head towards summer. The latest Paragon PRS Trends report questioned almost 800 landlords and found 43% felt tenant demand was ‘very strong’ in the first quarter of 2024. A further 40% stated it was ‘quite strong’.
South West registers strongest rental demand
Looking at the results geographically, tenant demand was strongest in the South West, followed by the North East. More than half of landlords in these two regions found the market to be ‘very strong’.
What should renters expect to pay this summer?
The latest Office for National Statistics data shows the average rent is £1,293 in England, £730 in Wales and £952 in Scotland. Looking at annual trends, it says UK rents rose 8.9% between April 2023 and April 2024.
Renters’ Reform Bill a pre-election casualty In England, the run up to the General Election did have an impact on lettings. The much discussed Renters’ Reform Bill fell by the wayside after it didn’t get Royal Assent before Parliament was dissolved. It’s thought this will be taken up again by whoever is in power after 4th July.
What did pass into law was the Leasehold and Freehold Reform Bill. It should now be cheaper and easier for people to extend their lease, buy the freehold or take over the management of a leasehold building. If you’d like to know how this affects a property you want to buy or a home you rent out in England and Wales, we’d be happy to explain.
If you would like to know more about your local property market, please get in touch.
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