A quick summary of everything we found interesting in the housing market over the last couple of weeks
House Prices rise – but not in London
The latest house price data from the Land Registry, based on actual sales that have taken place, shows prices are still rising in most regions. In England, the August data shows on average, house prices have risen by 0.8% since July 2019. The annual price rise of 1.1% takes the average property value to £251,233. The regional data for England indicates that:
- the North East experienced the greatest monthly price rise, up by 3.1%
- London saw the most significant monthly price fall, down by 1.3%
- the North East experienced the greatest annual price rise, up by 3.3%
- London saw the largest annual price fall, down by 1.4%
Here on the island we see prices broadly stable with attractive, well priced properties continuing to quickly attract buyers.
Rents are Rising Too
Homelet’s Rental Index figures for July 2019 show that rents are rising at the same rate at 2.3% on the same time last year – and they are rising everywhere. Outside of London, the average rent in the UK is now £794, up 2.2% on last year Average rents in London are now £1,665, up by 3.1% on last year. All 12 of the regions monitored by HomeLet showed an increase in rental values between July 2018 and July 2019.
The trends reported within the HomeLet Rental Index are new tenancies arranged in the most recent period, providing an in-depth insight into the lettings market.
Meanwhile, Rightmove said there was some evidence that tenants are paying the price of the fees ban, in terms of higher rents. Their data on asking rents outside London is at a new peak of £828 per calendar month – representing the biggest quarterly jump at this time of year since 2015. Within London, rents are at a record of £2,104 on average per month – the biggest quarterly jump since Rightmove began recording the data.
These latest increases mean Rightmove has recorded an annual rate of growth of 3.2% outside London, and of 5.6% within London.
Nationally, the number of available rental properties is 13% under its previous low in the third quarter of 2015, and 24% down in London.
Record numbers of First Time Buyers
There have been the most first-time buyer mortgages completed since before the global financial crisis according to trade body UK Finance. In August, there were 35,010 new first-time buyer mortgages, the highest monthly total since August 2007, when there were 35,070.
However, other types of mortgages were down, with 35,380 home mover mortgages in August, 5.5% down on the same month last year. Remortgages were also lower, down 2.9% over the year, coupled with fewer new buy-to-let mortgages.
Gas Boiler ban on new build houses might be brought forward
Developers could be banned from installing gas boilers in new homes from next year – five years ahead of originally proposed. The ban was mooted in March by then Chancellor Philip Hammond who said that the Government would implement its Future Homes Standard by 2025, in a bid to reduce a property’s carbon footprint. However, earlier this month the new(ish) Housing Secretary Robert Jenrick said that the plan would be accelerated as part of a package of green measures.
Experts have calculated that switching new homes from gas boilers to alternatives such as air source heat pumps could add as much as £5,000 to the cost of a new home alongside concerns that heat pumps may be slow to warm up properties. Interim measures are set to be introduced to stop developers side-stepping the new rules, for example by lodging planning applications early.
Landlords lose 1bn of Rent to Arrears
The TV programme ‘Nightmare Tenants/Slum Landlords’ makes for strangely compulsive viewing and we have been watching a few episodes of late. The programme makers estimate that landlords lose £1bn per annum in lost rent and a further £3.5bn in damages and unrecoverable costs.
This shows exactly why the Trigg & Co ‘Rent-on-Time’ scheme is so attractive to landlords. It guarantees the rent, covers all eviction costs and takes all of that potential heartache out of renting. What’s more, our professional service means we meet and vet all prospective tenants personally and all new tenancies go through a comprehensive referencing process.