July’s property market analysis

If you thought summer was a slow time in property, you need to refresh your thinking. The month of June yielded many talking points; crystallising what a tremendous six months we’ve just experienced, shedding light on the current market and giving an indication of what lies ahead.

Here we discuss house prices, rental values and major changes to lettings. There’s also a new UK average house price and a new Bank of England base rate. If you want to know how any of the points affect your property plans, please get in touch.

The most accurate data revealed

June saw a glut of house price and rental value data, reflecting activity in the last few months. The latest UK HPI – the Government’s own house price index compiled using Land Registry data – makes for interesting reading. It’s an important property marker as it uses the price paid on completion for accuracy.

Real time snapshots

The most recent UK HPI is for April 2022. It revealed UK house prices had risen by 12.4% between April 2021 and April 2022. In April alone, house prices had risen 1.1%, with the average UK home now valued at £281,161. 

In England, detached homes had seen the biggest year-on-year value rise (14.2%), followed by semi-detached properties (13.2%) and terraced dwellings (11.4%). Flats and maisonettes had risen in value by 7%.

In lettings, an accurate snapshot comes from a set of May figures. The UK’s average monthly rent remains above £1,000 per calendar month (pcm), according to HomeLet’s most recent statistics. Tenants were asked to pay £1,103 pcm in May – 1.1% more than in April.

For the record, the largest monthly rent increase noted in May was 1.6%. As a result, the average rent rose 10.6% between May 2021 and May 2022. There was annual uplift of at least 5% in every UK region, with the biggest annual hike registered at 15.7%. 

1 in 10 homes selling within 2 weeks

When it comes to speed of sales, GetAgent found 11% of homes are sold, subject to contract, within 14 days of launching. In some areas, 1 in 5 homes are selling within two weeks. It says this reflects a persistent lack of stock.  

Rightmove provides another source of real-time data. It analysed the asking price of new listings to see if values were rising. The price of a property for sale rose +£1,113 in June when compared to May, with a new average of £368,614. This is the fifth consecutive record of the year, with demand for properties 6% higher now than at the same point last year. 

More homes for sale coming to market

For buyers concerned by a lack of choice, Rightmove’s figures suggest the tide is turning. It says the number of properties for sale is up 7% when compared to the same time in 2021. The portal also suggests house price growth is on track to be 5% by the end of 2022.

The future of lettings laid out 

We finally know how the private rental sector will change, thanks to the publication of the Fairer Private Rented Sector White Paper. In the future, fixed-term tenancies will be phased out, to be replaced by period tenancies, and Section 21 evictions will be outlawed. It will also be easier for tenants with pets and children to find a rental, and there will be a fairer deal for those in receipt of benefits.

New introductions also include a Decent Homes Standard; a private renters’ ombudsman; a new online hub for landlords and a cap on how frequently landlords can raise the rent – pegged back to once annually.  

If you would like to know more about your local property market, please get in touch.