House prices more than £30,000 higher than this time last year while rents move upwards!

We’ve seen exceptional demand from buyers and tenants alike as summer is in full swing. As we look towards the autumn, we believe prices will remain firm even as household budgets are squeezed. We advise booking an up-to-date valuation now so, if you are thinking of moving or letting a property, you have the right facts and figures at your fingertips to make an informed decision.

HALIFAX: MARKET DRIVERS – SUPPLY SHORTAGE OF HOMES FOR SALE, EXTRA FUNDS SAVED DURING THE PANDEMIC, INVESTMENT DEMAND AND NEED FOR FLEXIBLE HOMES WITH REMOTE WORKING. HOW MUCH IS YOUR PROPERTY IS WORTH TO SELL OR LET TODAY?

Annual property price growth now 11.8%*
House prices remain more than £30,000 higher than this time last year
Available stock still 40% down compared to June 2019’s levels helping to underpin prices**
Buyer demand is now 26% higher than the same time in 2019
Rightmove revises full year 2022 house price forecast up from 5% growth to 7%
Continuing desire to move and low numbers of homes for sale are driving further price growth even at a time when personal finances are becoming increasingly stretched
New record average asking rents of £2,257 pcm in the capital, with annual growth now exceeding 15%, the highest ever annual rate of any region**
New rental listings are up 8% in June compared to the start of the year
Rental demand is up 6% compared with last year and available properties are down 26%
Buy to let purchases with a mortgage remain higher than pre-pandemic levels***

*Halifax

**Rightmove

***Nationwide

Will they, won’t they?

We’re talking about house price and the possibility of rises or falls. Our view is that any decrease will be marginally as borne out by the high street lenders’ recent monthly house price indices. While prices could come under pressure, the underlying factors are positive - demand for property remains high, stock is still low and the jobs market is still strong – and there’s no chance of those changing in the foreseeable future. Mortgage interest rates are rising but the current average mortgage rate for a two-year fix is just over 3% compared to just under 6% ten years ago. Zoopla’s latest data shows demand for homes remains 25% above the average over the last five years and pandemic factors such as the desire to work from home is stimulating more home moves. Retirement is also the trigger for home moving decisions, with many older owners additionally motivated to move by cost-of-living concerns and running costs of their current home.

Rightmove notes that average monthly rental payments are now 40% higher than they were ten years ago, while average mortgage payments for the same properties are up 13%. Despite challenges, more landlords are planning to expand their portfolios in the coming 12 months (34%) than reduce them (11%). The portal has revised its forecast upwards from 5% to 8% growth in asking rents by the end of the year due to sustained high demand and slow speed of stock recovery.

This is great news for landlords and would be investors.

Interested to find out what your property is worth for sale or rent?

We’d be delighted to offer you a full market appraisal free of charge.