Rental values soar while property market prices remain healthy
But a cooling down later in the year could be good news for first-time buyers.
If you’re wondering what the impact of UK property market trends will have on your home in Holmfirth, Mirfield, Honley, Huddersfield and West Yorkshire generally, this property market overview will give you some useful context.
Property ladder
It’s not only food, fuel and energy that are seeing massive price hikes, it’s the property rental market too. The last year has seen unprecedented growth in the private rented sector, which is good news if you’re a landlord, but not so good if you’re a tenant.
Latest figures from Homelet, which uses data based on achieved rents from recently-agreed rents in the private rented sector, show that average rental costs in the UK reached an all-time high in May of £1,103 per calendar month.
Every region in the UK has recorded both annual and monthly rental growth, with the exception of the North East where rents fell by 0.7% in May.
London, as expected, continues to see the largest rental growth but, when rental values for the capital are removed from the monthly figures, the UK average rent now stands at £928, an increase of 8.7% on 12 months ago. At £1,832, average London rents are up an incredible 15.7% on last year.
Despite the continued strength of property prices, could a slow down be on the way?
In the property sales market, conditions remain buoyant with prices up 1% in May, representing their 11th consecutive monthly increase. According to the latest property report from the Halifax, annual property inflation has slowed to 10.5%, but nevertheless the average price of a property in the UK reached a record of £289,099 last month. Over the past 10 years house prices have increased by 74%, or by an average of £123,016, which is great news for homeowners looking for sustained capital growth.
Whereas the North and North West of England have been in the spotlight previously for rapid price growth, the attention has now turned to Northern Ireland where the average value of a property is up 15.2% to £185,386.
This compares to a new average price of £541,942 for a new home in London, which has seen the lowest price growth of just 6.4%.
So what do current property market trends mean for Yorkshire homeowners and property renters?
In simple terms, we’re still experiencing house price growth, and this is reflected in the imbalance between supply and demand. However, the market is now showing signs of cooling down, especially given the impact of the cost of living on market confidence, and the ability for first-time buyers to save for that all-important deposit.
While property prices have remained surprisingly buoyant, despite recent pressures, the prospect of double digit inflation caused by rising fuel and energy costs, is forecast to lead to a slowing in the market for later in the year. Also, the Bank of England’s June 16 interest rate rise of 0.25% to 1.25% will make the cost of borrowing more expensive. These factors will clearly have an impact at some stage this year. But for the time being, it remains a seller’s market.
Want to buy, sell, rent or let? Before you move, why not talk to our experts in our Holmfirth or Mirfield estate agency branches. At Snowgate we’re on a mission to do estate agency differently, with straight-forward honest advice from a team of people who know the local property market inside-out. Fresh, honest, different, And if you’re looking to sell, make sure you get a professional valuation from us first. Call us on 01484 680800 for Holmfirth, or 01924 497801 for Mirfield or book a property valuation here.