Property Market Insights
When will house price growth return to normal levels?
Inflationary House Price Factors
UK house prices increased by more than £43,000 since the pandemic started, reaching a record high in March, the average price of a property rose to a record high of £282,753.
The value of a home rose 11% compared with the same month last year. (source Halifax}
There is still a lack of supply and strong demand
Factors influencing the market include:-
Many borrowers may have savings accrued during the 2 year pandemic.
Larger equity values.
Mortgage rates remaining historically low, despite B of E raising interest rates.
Continuing demand for housing with office space to meet the hybrid working styles.
Deflationary House Price Factors
On the other hand:
The price increases are unlikely to continue at this rate for much longer, a slow down is expected !
Cost of living is increasing at a rate not seen for many years.
Inflation is increasing.
National Insurance tax increase
It probably will affect housing at the £250k/300 level and low level earners mostly as the Mortgage lenders will increasingly review the ability to repay mortgages from their take home pay and test how much a worker can afford, resulting in sellers having to reduce prices a bit.
Landlords and Rental Property
Landlords bought more homes in the first three months of this year than they sold the first time since April 2016 when the 3 percentage point stamp duty surcharge was introduced. (source Hamptons)
Landlords bought 43,000 homes, a trend reversal.
Rents are rising due to a shortage of rental properties and surging tenant demand. The average monthly cost of a new let rose to £1,115 in March, a rise of 9.1% compared with the same month last year
If you are interested in our managed services or would like to recommend our property management to a friend or colleague – we suggest you take a look at our Rental Property Management page. You will also find information on our £250 referral fee and other useful property guides and information.
Rental Yield Calculator and useful info.
Changing lifestyles are Changing Rooms!
Zoopla is reporting that 2 in 5 homeowners have repurposed and adapted their property during the pandemic – the need for Home Gyms and Home Offices taking precedence over the need for bedrooms and as such it is estimated that as many as 9 million bedrooms have been wiped from British homes!
What this means for the property market is considerable – if you are a landlord you may also want to think about the value of having specific spaces or hybrid-rooms created for these activities, along with classrooms, dedicated media, games and music rooms there are also reports of over 900,000 home bars.
Whatley Lane are renowned for really getting to the unique points of their clients property – whether being presented for sale or to rent – you will find the property details, information and photography exploring the fullest potential and showcasing the homes true value, this is to ensure prospective viewers have the fullest and most accurate picture and that the respective landlords or vendors get the most qualified and suitable applicants. See our curated collection for property.
JANUARY HOUSE PRICE RISE – biggest since 2005.
The Nationwide House Price Index rose at an annual rate 11.2% last month, the fastest rate in 17 years, a faster growth than expected, despite higher interest rates and surging inflation.
Housing demand has remained robust, but with an extremely low level of stock on agents books, which has contributed to the pace of growth.
The housing market is expected to slow during 2022, although demand for bigger properties, therefore facilitating work from home will support strong prices.
Further increases in interest rates will make borrowing more expensive and give buyers pause for thought, coupled with surging inflation. However, some households have accumulated larger reserves of savings during the crises as spending was restricted, and this will will help.
For full market data findings please visit this link for the Nationwide House Price Index.