The latest property news headlines continue to reflect the underlying trends of the UK economy. While average house prices tumble nationwide, aspects such as energy efficiency and location also impact the market locally.
Commentators predict that rent levels are on a relentlessly upward trend.
So, letās take a look behind those headlines.
Zoopla: House Price Index August 2023
The online listings website Zoopla published its latest House Price Index.
This revealed that ā despite the recent fall in prices ā there continued to be a modest annual average rate of growth. Admittedly, this registered an increase in average prices of barely 0.1% ā the lowest since 2012.
Regional differences account for the fact that whereas annual prices fell by some 1% in London, they rose by 1.7% in Scotland.
Higher mortgage interest rates continue to depress the volume of sales ā which is 28% down on the previous year where a mortgage is needed to make the purchase. Since cash sales are unaffected by mortgage rates, the overall annual drop in transactions is 21%.
By extension, therefore, if mortgage rates fall during the course of the coming year, then activity in the housing market is likely to increase, says Zoopla.
Sellers of homes with improved EPC ratings see āgreen price premiumā
Going green makes sense for the environment ā but might also help to boost your personal wealth.
That is the message in research recently conducted by the online listings website Rightmove recently.
It reveals a marked premium is paid by buyers of properties that have a higher than average Energy Performance Certificate (EPC) rating. Comparing a home that has an EPC of D with one that has an improved C rating, the difference in price could be some Ā£11,157 ā a gap of some 3%. Comparing a property that achieved a lowly F rating with one that scored a C rating exposed a difference of nearly Ā£56,000 (15%) in terms of nationwide average house prices.
Furthermore, those āgreenerā properties with a higher EPC also sold more quickly than less energy-efficient homes.
A majority of people interviewed in Rightmoveās survey would be happy to pay such a āgreen premiumā in order to enjoy the benefits of lower energy bills in the future.
New report: Northern cities are UK property hotspots
Although the national rate of growth in house prices has fallen in the past 12 months, some regions in the north of England and Scotland have stood out as property hotspots, according to Estate Agent Today on the 6th of September.
Counter to the usual expectations that house prices traditionally climb more steeply in the south, reports indicate that between January 2020 and June 2023, the principal property hotspots were in the north of the country:
- the northwest ā where average prices rose by more than 34% during the period in question;
- East Midlands ā a little over 32%;
- Scotland ā more than 27%;
- the northeast ā more than 23%; and
- Yorkshire and the Humber ā also more than 23%.
In the southeast of England, by contrast, average house prices struggled to grow by a little more than 14% in that same timeframe.
Cost of renting will continue to ‘rise sharply’, warn lettings agents
As tenants already know to their cost, rents have risen steeply in recent months. The bad news is that they are tipped to continue to rise even more steeply, according to a story in the Daily Mail recently..
Citing research by the Royal Institution of Chartered Surveyors (RICS), the newspaper revealed that more than half (54%) of all lettings agents have reported increases in rents during the previous three months to the end of July.
Nationally, average monthly rents have reached a record Ā£1,367 ā yet strengthening demand against a background of declining availability means that rents are almost certain to continue to grow still further.
