Finally some proper summer weather has arrived but are we looking at a property market also about to heat up? It’s a case of ‘steady as she goes’ in July, with consistent activity. There are, however, indications that more home movers are primed to take action soon.
The catalyst could lie at the Bank of England, with the finance sector sensing movement. Several lenders have started reducing mortgage rates in anticipation of an interest rate cut. Barclays, Nationwide, Santander and HSBC have all revised their home loan pricing, with some rates dropping below 4% for the first time in months.
Asking prices soften slightly
With a General Election, the Olympics, the football Euros and the school holidays all coinciding with July – and speculation about an interest rate reduction - it’s no surprise some movers are holding back. As a result, Rightmove’s latest House Price Index revealed the UK’s average asking price dipped by 0.4%.
Sales and new sellers increase
That doesn’t mean to say the market is quiet. The portal says the number of sales agreed is 15% above the same period in 2023. Additionally, the number of new sellers coming to market remains 3% above last year.
At Zoopla, the number crunchers completed their analysis to create its July House Price Index. According to data, the UK’s average house price currently stands at £265,600 – marginally up from £265,400 four weeks ago. Interestingly, Zoopla says 12% of homes currently for sale were previously rented.
With house prices still rising, is it the same in the UK’s rental market? The latest HomeLet Rental Index shows that UK rents continue to nudge upwards. In June, rents rose by 0.2%. This leaves the UK’s average monthly rent at £1,299.
While the cost of renting today is a great snapshot of the market, many of us want to know what might happen in the future. New data from Landbay gives us a glimpse. Its survey of existing landlords found almost 85% plan to raise rents in the coming 12 months.
The value of rent rises was also revealed. When questioned, 36% of landlords said they plan to raise rents by up to 5%, while 37% aim to increase rents between 6% and 10%. Far fewer landlords will go heavy with rent rises, with just 8% intending to raise rents between 11% and 19%.
Demand outstrips rental supply
Despite rental values continuing their upward trajectory, tenants are not deterred. Analysis by Rightmove discovered there are 17 enquiries for every single rental property listed. Although this is down from 26 enquiries in 2023, it is more than double the number of tenant enquiries per property seen in 2019 (8 enquiries).
In July, the subject of EPCs drifted back on the radar. While England and Wales wait for the Renters’ Rights Bill to confirm whether minimum energy efficiency standards in private rentals will change, Scotland looks to push ahead with ambitious EPC plans for all homeowners.
Scotland bidding to increase EPC standard for all
Pulling ahead of its British counterparts, the Scottish Government wants all homes to have an EPC rating of C by 2033. It is thought the move will start with private rentals (by the end of 2028) and will extend to owner-occupier properties. The plans are part of the wider Heat in Buildings Bill.
Scotland’s EPC plans have, however, been exposed as poorly publicised. A survey of homeowners in Edinburgh, the Lothians, Fife and the Borders by Progressive found 73% weren’t aware of the Scottish Government’s intention to introduce mandatory minimum EPC standards for owner-occupied properties.
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