Your market update

UK property prices up 13% compared to pre-pandemic

When the stamp duty holiday came to an end, it was expected that the home buying frenzy would tail off, however, prices and demand continue to soar.

 

There are currently 24% fewer homes on the market than this time last year, with higher than average enquiry levels and interest per property listed.**

 

Even when SDLT savings dropped from £15,000 to £2,500 earlier this summer, house prices were 11% higher when compared with August 2020, as increased demand led to competitive offers from buyers.*

 

For August 2021, the average price sat at £248,857. That has risen by 13% since the start of the pandemic, and an increase of £5,000 in the space of one month.*

  

Levels of demand are set to continue climbing as borrowing costs remain low. The fact that these costs have remained low has caused consumer confidence to grow, increasing demand further.

  

Experts predict that in autumn 2021, the property market will continue to see promising transaction levels, whilst by 2031, the average house price will have jumped by 30%.***

 

Our property experts can give you a reliable and free market appraisal, so that you know exactly how much your property is worth.

 

Book your valuation today.

 

 

 

*Nationwide

**Zoopla

***Based on trends from the Office for National Statistics

 

 

Rents rise at fastest rate for 13 years

The lettings market is booming, with properties letting almost a week faster than in 2020.

 

Now the pandemic is easing, people are returning to the city centres, which is causing an increase in demand and a shortage of available rentals on the market.

 

Rents outside of London have increased at their fastest rate since 2008, reaching £790 PCM on average.

 

Whilst rents outside of London have shot up by 5%, London landlords are also seeing a rise in value.

 

The average rent in London now stands at £943, up 2.1% compared to last year.

  

Affordability has remained consistent across this period, with average earnings increasing faster than rents, ultimately showing signs of healthy growth in the buy-to-let sector.

 

With tenant interest 80% higher than the average between the periods of 2017 and 2019, demand is still outstripping supply of rental properties.

 

What is causing this spike in demand?

 

- Students returning for the academic year

 

- Returning demand for city properties post-lockdown 

 

- Level of rental homes decreasing by 13%

 

This mismatch in supply and demand has forced rents up and led to the rental market’s fastest paced year since 2016.

 

If you want advice on any aspect of the rental market, or are interested in a rental valuation, contact us today.

 

 *Zoopla Rental Market Report

 

 

What's changed with tenancy evictions?

Over the last 18 months, a number of measures were put in place to protect tenants who were unable to keep up with their rent payments.

 

This put a strain on landlords and the lettings market as a whole, with the government easing these rules back gradually to help all parties involved recover from the effects of the pandemic.

  

A notice period can be anywhere up to six months before an eviction can take place. In addition to this, a tenant can only be asked to leave during the contract's fixed term, if:

 

- The tenant is behind on rent payments

 

- The property has been used for illegal activity

 

- The property has suffered damage during the tenancy

 

Notice periods have been extended since the pandemic, which gives tenants some breathing space if their employment status has changed.

 

Once the tenant has been issued with a written notice of wanting the property back, the tenant is given:

 

- Two months to vacate if they gave notice prior to the 26th of March 2020

 

- Three months, if it was between 26th March and 28 August 2020

 

- Six months, if it was after 29th August 2020

 

- Four months, if it was after June 21 2021

 

Despite these dates, according to the government, if a tenant is evicted with a section 8 notice, the tenant may have to leave much sooner.

  

A tenant should pay rent until the end of their agreed term in accordance with the contract they would have signed. Despite this, it is normal to still liaise with the landlord to see whether there is a break clause in the contract.

 

Landlords may also allow a tenant to leave a fixed-term contract early if the tenant has a direct agreement with them, such as finding a replacement.

 

Do you need help as a landlord or tenant? Talk to our team today. 

 

 

 

How much do you know about the mortgage process?

According to a recent survey, buyers are hopelessly uninformed on the mortgage process.

 

Whilst the furlough scheme was active, 64% of those living in Britain believed that lenders would not consider whether they received support when applying for a mortgage.*  

 

Likewise, from a survey of 2,000 adults, 42% did not believe being self-employed would be considered.

 

When deciding whether to lend to you or not, a bank will always assess the risk factor, which means taking into account anything that may affect repayments, such as your employment status and spending behaviour. 

 

Of all generations, it is those aged 35 and under with the least experience on what to expect when applying or looking to re-mortgage for a better deal.

 

Only 15% of those aged 18 to 24 knew that the government-guaranteed mortgage scheme announced earlier this year applied to them, with a staggering 85% left in the dark.*

  

Wondering if you’re eligible?

 

Open until 31 December 2022 for new applications, this scheme is available to first-time buyers and home movers across the UK.

 

For more information, go to: https://www.gov.uk/government/news/new-95-mortgage-scheme-launches

  

If you’re looking for mortgage advice, contact our dedicated team today. We can provide comprehensive advice and help you find the best deal possible.

 

 

*Estate Agent Today