The latest UK property news focuses on the movement in house prices – examining the picture both locally and nationally.
In the private rented sector, headlines reveal the extent to which many landlords are prepared to adapt their properties to accommodate the needs of older tenants while the Renters Reform Bill is almost certain to have a major impact on this sector of the market.
Average house prices in your area
In a posting on the 31st of January, the online listings website Zoopla published a searchable map of the UK so that you can identify the current average price of a house in your particular area.
It sets the scene by noting that the national average stands at £261,200 – a 6.5% increase in prices one year ago.
Hotspots for the strongest growth in average prices around the country are illustrated by the following statistics:
- Wigan – the highest rate of growth at 10.4%, to a current average price of £164,900;
- Wolverhampton – prices increased by 9.8% in the past year, and the average currently stands at £175,400; and
- the Scottish Borders – 9.6% growth in prices to a current average of £179,000.
If you are after the cheapest homes in the UK – with many areas reporting rates of growth less than the national average of 6.5% – Zoopla ranks the following three places:
- Inverclyde, in Scotland, where the average price of a house is just £101,500 (an increase of only 5% in the past 12 months);
- East Ayrshire – with prices averaging £102,700, up 4.3% on last year; and
- West Dunbartonshire, also in Scotland, where you can buy a house for £108,800 – paying approximately 4.4% more than at this time last year.
2023 begins with further slowing in annual house price growth
The latest house price statistics for January released by the Nationwide building society illustrate a steady decline in the rate of growth in average house prices nationally.
The building society recorded a 0.6% decline in prices in January compared with December, which were in turn 0.3% lower than the previous month.
On an annual basis, this meant that average prices had climbed by 2.8% in the 12 months to the end of December but that fell to an annual rate of just 1.1% in the 12 months to the end of January.
The average price of a house in the UK stood at £262,068 in December but this had fallen to £258,297 in January.
If current signs of mortgage rates stabilising are realised, some commentators predict that the housing market may begin to recover in the year ahead.
Landlords content to make property alterations to suit older tenants
Recent research – cited by Landlord News on the 25th of January – suggests that many landlords would be prepared to invest in remodelling their let properties to better accommodate the needs of older tenants.
Almost a half (46%) of the landlords surveyed in the study said they would adapt their property accordingly – 21% of them said they would spend up to £1,000 on any necessary building works, 11% were prepared to invest up to £3,000, and 5% content to spend £5,000 or more on making their let accommodation more suitable for older tenants.
The willingness of landlords to make these changes is also reflected in the ageing profile of many prospective tenants. Government statistics show that the number of tenants aged between 45 and 64 years in the private rented sector has grown by 70% in the past decade while the number of those aged 65 or more has increased by 38%.
Renters’ Reform Bill likely to increase pressure on landlords
Although it is likely to result in bigger challenges and considerably greater pressure for landlords, the Renters Reform Bill is making its way through the legislative process with comparatively little notice from those it will most impact, according to Property Reporter on the 31st of January.
The Bill tips the scales firmly to the advantage of tenants – to the detriment of landlords – because it proposes:
- abolition of the so-called “no-fault” evictions of Section 21 of the Housing Act;
- an ombudsman for the private rented sector to help protect the rights of tenants;
- outlawing landlords’ ability to refuse tenancies for people in receipt of welfare benefits; and
- granting greater powers to local authorities in the enforcement of tenants’ rights.
The Renters Reform Bill is expected to pass into law later this year – possibly as early as this Spring.
