A round-up of data from across the property market
Rents continue to rise, but are residential sales set to cool? Here’s a summary of what some experts from across the market are saying.
RICS members have reported supply and demand imbalances continue to fuel house price growth, claiming:
“A widening disparity between demand and supply within the market, with the flow of new listings deteriorating over the month while buyer enquiries rose at a solid rate; consequently, the gap between the new buyer enquires and new instructions series is now at its widest since November 2013, signalling a real mismatch between supply and demand.”
Meanwhile, property portal Rightmove claims:
“New records continue to be set as the average price of property coming onto the market jumping by 1.8% compared to the previous month.”
The Economist house-price tracker shows values across Britain are now 94% higher than the first quarter of 2000; warning “if prices climb higher than earnings then a bubble could form.”
According to The Times the booming housing market is set to slow, predicting “the pace of growth is expected to slow over the coming months as stamp duty relief is withdrawn, but analysts said that housing momentum would remain strong.”
However, over to the lettings market and the story is far steadier and more predictable.
According to HomeLet, The average rent in the UK is now £997, up by 0.1% from last month, and up 4% on last year.
- When London is excluded, the average rent in the UK is now £854 which is up 0.1% on last month and 6.4% on last year.
- 11 of the 12 regions showed an increase in annual variance, with the largest being the East Of England at 8.5%.
Indeed, commenting about the lettings market RICS report “tenant demand growth remains firm at the national level, with landlord instructions remained in negative territory for a tenth consecutive month; predicting around 3% growth in headline rents.”
So what does this mean for landlords?
The increase in property values is positive as the overall value of their portfolio continues to climb over the longer-term; whilst at the same time the modest growth in rental prices should mean renting a home doesn’t become unaffordable for tenants.
However, with the final phase of the tapering out of the Stamp Duty Land Tax break announced last year looming ever closer, some experts are predicting asking prices to fall away slightly in the autumn which would present an opportintiy for landlords looking to buy.
Our national branch network have the expertise to spot a property which is perfectly priced for an investor, which also be popular with would-be tenants; If you’re planning to increase your portfolio, speak to your local branch.
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