Over the last few days, UK property advertisement portal Rightmove have released figures and information that are a result of careful analysis of the property market this year. Some of the highlights they have commented on so far are house prices hitting a 6-month record peak but seemingly slowing down, rental payments growing at record pace, housing stock shortage starting to ease. A mixed bag of good news and bad news really from Rightmove so let’s jump in and see exactly what they are reporting.
Housing Market Property Prices
According to Rightmove, the average price of a property in the UK is now at a 6-month record high. The average house price is now £369,968. Of course, this price is high and to anyone looking to move house or get onto the property ladder as a first-time buyer, this might seem way out of your budget. However, the average price of a house only increased by 0.4% in July, a far cry from the enormous 9.7% leap in June 2022. Hopefully indicating a cooling off of house prices.
But Rightmove have commented on this saying “A 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.” So, we may not be out of the woods yet and don’t start celebrating too early. Buyer demand is still higher than levels we’ve seen in the past and is now 26% higher than the same period in 2019, although down 7% on June 2021 according to Rightmove.
The report also discusses the rental market and claims that since last year, rental prices (amount landlords are having to charge) has increased by 12%. Predictably as a result of house prices being so high, more people are looking for rental properties meaning that landlords are having to push rent up. According to Rightmove’s research, the average UK asking rent outside of London has hit a new record of £1,126 per calendar month.
Tim Bannister, Director of Property Science at Rightmove has commented “The wide gap that has been created between supply and demand over the last two years will take time to narrow. Until then, this imbalance will continue to support asking rent growth.”
Rightmove expects rental prices to grow by a further 8% before the end of the year, up from the 5% predicted growth at the start of 2022.
Housing Market Stock Shortage
Finally, they have made some comments on the housing stock shortage that has been affecting the UK for the last couple of years, which seems to be easing. In a somewhat double-edged sword, people who currently own properties are selling their houses and apartments to capitalise on the record property prices. So yes, properties are coming back on the market faster and more frequently than before but, the prices are still going to be high because people are wanting to make as much money on their property as they can. If property prices come down, will this mean that people will be more reluctant to sell? Only time will tell.
According to Rightmove, the number of new properties for sale is up by 14% over the past two weeks compared to the same two weeks last year.
Tim Bannister comments again, “In recent months, we have reported a slight easing of the market and the pace of price growth compared to the exceptional levels of last year, and now we are seeing signs of some of the pressure on stock easing too.”
It seems like the property market is in the middle of a slight tug of war at the moment and we will honestly have to wait and see what the next coming weeks and months hold. We will keep everyone updated on the current state of the market as more news develops, and if you or anyone you know would like to speak with one of our advisors about anything at all, please feel free to give us a call.