Low supply and soaring demand fuel high prices for both the sales market and the private rental sector – a truth that makes itself felt by landlords and tenants. 

NAEA Propertymark – a membership body for estate agents – has recently shared data collected by its members to provide a snapshot of the current situation. Interestingly, almost 80% of agencies say rental prices have increased monthly since May. This reflects a wider trend of rising rents over the last 12 months. 

While more properties have appeared on the market since February, agencies are seeing applications from new tenants reach an average of 113 per month – compared to 78 applicants in February. * 

With demand easily matching supply, prices are steadily rising, providing a good opportunity for landlords to enter the market or increase their portfolios. This, in turn, could help balance out the supply issue over time – a win for tenants, too.  

We know some potential landlords are worried about the recently published Renters’ Reform White Paper. However, the proposals are still up for debate before any new legislation is introduced. The Government is also planning to strengthen ‘Section 8’ grounds for possession and improve rights for responsible landlords. 

If you’re hoping to capitalise on the lively private rental market, book a lettings valuation today – you may be pleasantly surprised by what you could achieve. 

Property Reporter * 

With inflation reaching 9%* and the cost-of-living crisis undermining consumer confidence across the board, it may be surprising that the average UK house price recently hit a record high. While this is fantastic news for sellers, the latest figures from the Nationwide Building Society suggest the market is strong but losing steam. 

According to Nationwide’s figures, the average home currently costs £271,613. But the latest release of the UK House Price Index actually puts the average slightly higher at £281,000 – a 12.4% increase compared to the previous period.** 

However, there’s some evidence that the market may be heading towards a pinch point as rising interest rates and a potential economic slowdown cast their shadow. In the past three months, the growth rate has decreased – although June was the 11th month in a row that prices rose. 

In the coming months, widespread financial pressures may reduce the number of approved mortgages and lessen overall demand, which could affect average house prices. Currently, the market is resilient, which may be explained by a lack of supply and a buoyant labour market.  

What does all this mean for you? If you’re planning to sell, a ‘sooner rather than later’ attitude could prove advantageous. This is especially true in popular areas for buyers, such as the South and North West of England, East Anglia, and Wales.  

Increasing prices can positively influence how much your home is worth. The only way to know for sure is by booking an up-to-date valuation – just contact us to arrange yours today. 

*Consumer Price Inflation (ONS: May 2021–2). 

** UK House Price Index (ONS: April 2021–2).