Whether you are a homeowner, landlord, or both, it’s important to keep abreast of the latest property news. Here is a closer look at some of the latest property headlines.
House price growth softens following April surge
Building Society Nationwide published its house price index up to the end of May. It portrayed a more or less stagnant housing market as consumer confidence continues to be influenced by wider economic and geopolitical uncertainty.
The combined effect resulted in slower growth in average annual house prices from 3% in April to just 1.7% in May.
The decline in prices was also reflected in reduced buyer interest. According to Nationwide, there was a sharp drop in enquiries from potential new buyers in March. This sent the market sentiment index for April plunging to its weakest, negative point since 2023.
For all these weaker indicators, the building society remained optimistic overall. It argued that household finances remain strong, with domestic debt relative to household income at its lowest in almost 20 years. Significant savings also contribute to a steadily improving affordability with respect to the costs of housing. Nationwide suggested that affordability has remained relatively resilient despite recent increases in mortgage interest rates.
Desirable nursery catchments drive house price premiums
The high cost of nursery places is a major concern for young working families. It may come as no surprise, therefore, that research published by Property Wire on the 8th of June revealed that buyers are prepared to pay a hefty premium to be close to highly rated nursery schools.
The study indicated that buyers are prepared to pay an average premium of £77,926 to be close to highly rated nursery provision. Homes close to nursery schools rated by Ofsted as “Outstanding” command prices that are, on average, 16% higher than similar properties in the same local authority catchment area.
According to the research, in some parts of the country, that premium can be significantly higher. In Chelsea, for example, an average premium as high as £658,408 – or 34% more than similar houses in the same London borough – has been paid. In outer London, buyers have paid an average premium of £194,974 (33%), in Waltham Forest £153,261 (26%), and in Kingston upon Thames £117,646 (18%).
Government EPC retrofit funding gap laid bare
In an article on the 5th of June, the Buy Association calculated that it would cost an estimated £8,074 to bring the average privately rented home up to the government’s proposed energy efficiency standards (minimum EPC rating of C in England and Wales). There are some 2.9 million such dwellings. The total bill for bringing them all up to the required standard was estimated at £23.4 billion.
Yet the government has earmarked only £5 billion in the so-called Warm Homes Fund which is designed to help all homeowners and landlords achieve the new EPC targets. Even if the whole of that £5 billion were allocated to private sector landlords, that would still leave a £18.4 billion funding gap to help landlords retrofit energy efficiency measures.
More than half of landlords report strong tenant demand
Citing research by the National Residential Landlords Association (NRLA), Mortgage Strategy on the 5th of June urged government to do more to boost confidence in the private rental sector and stem the tide of landlords leaving the buy-to-let market.
The article pointed to the strong demand for rented accommodation against a background of landlords selling up and leaving the market in the face of declining confidence in government support.
Across the UK, argued the story, some 58% of landlords report demand for rented accommodation was either “strong” or “very strong”. There are regional differences, of course. In Wales and the North East, almost three-quarters (74%) of landlords surveyed reported strong demand. The lowest levels of demand appeared to be in the South East and the West Midlands – but even here, 51% of landlords reported that demand is strong.
Disclaimer: Property market conditions, legislation and government proposals can change. This article is intended as a general overview only and should not be relied upon as financial, legal or investment advice.
