Land Registry figures on current UK property market have revealed that house prices rose by 3.2% in the year to August 2018.

Key Findings

• House prices grew fastest in the East Midlands region increasing by 6.5%
• West Midlands region which increased by 5.1% over the year.
• House prices in London fell by 0.2% in the year to August 2018.
• Annual growth in London house prices has been around zero for the last 6 months.
• The average price for a home in the UK now stands at £232,797.

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HomeLet has shown that average rents across the UK rose by 1.7% in September 2018 when compared to the same month a year previously; the average monthly rent is now £943.

In London rents increased by 3% during the same period with the average rent in the capital now at £1,640 a month.

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Recent analysis from Prudential has shown that dreams of owning a home are overtaking the desire to put money aside for retirement.

Key Findings

• 35% of millennials say they prioritise saving for a deposit on a home instead of their retirement.
• 19% say buying a house is the main reason they don’t save more into their pension
• 10% say student debt stops them saving into a pension.
• 9% admit that frequently changing jobs affects their ability to make regular pension contributions.
• They are willing to make sacrifices for home ownership with 10% living with parents instead of renting to help save more money for a home.
• Men are almost twice as likely to be heading home compared to women.
• 31% expect to buy their first property by the age of 30, with men (39%) more confident than women (26%)
• 20% expect to receive financial aid from the Bank of Mum and Dad.
• But pensions are feeling the strain, Prudential’s research found. Around 21% say they have not started saving for retirement yet while 15% say pension saving does not motivate them and 12% believe pensions are irrelevant to millennials.
• Near  17% of under-35s say buying a house is a not a realistic option currently
• 11% say saving for a house deposit is not a priority.
• Research also showed that one in seven 35-54-year olds have given up on the hope of ever owning a home.

Kirsty Anderson, retirement income expert at Prudential, said: “Juggling buying a house with saving for retirement is challenging and it is inevitable that something gets dropped which unfortunately appears to be retirement saving.

Retirement can seem daunting for millennials and is of course a long way off when you are contending with student debts and high rents. However, it is crucial to start saving for your pension as early on as possible, putting away as much as you can each time. It is easier if you start doing this as soon as you start working so you get used to the money going straight into your pension pot. Many will at least be saving through the workplace, which is a good start, and contributions should be regularly reviewed to ensure a significant fund can be built up.”

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Nationwides latest house price report has revealed that house price growth has settled at 2%,

Robert Gardner, Nationwide’s Chief Economist, had this to say: “Annual house price growth was stable in September at 2%.

Indeed, annual house price growth has been confined to a fairly narrow range of c2-3% over the past 12 months, suggesting little change in the balance between demand and supply in the market.

Looking further ahead, much will depend on how broader economic conditions evolve, especially in the labour market, but also with respect to interest rates. Subdued economic activity and ongoing pressure on household budgets is likely to continue to exert a modest drag on housing market activity and house price growth this year, though borrowing costs are likely to remain low.

Overall, we continue to expect house prices to rise by around 1% over the course of 2018.”

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New research data from ARLA Propertymark,  has shown that rent hikes was at the highest level ever recorded in August reaching 40% – up from 31% a month earlier. This is the highest figure recorded since records began in January 2015.

David Cox, ARLA Propertymark Chief Executive, said: “As we’ve highlighted before, the impact of recent and ongoing tax changes continues to have a material impact on the buy-to-let market. Four in ten tenants saw their rents rise in August – the highest level we’ve seen since records began. Although it’s encouraging to see the number of properties available to rent rising, supply still isn’t anywhere near high enough to slow down the pace of rent rises. We need more homes to rent, and for Government to change its narrative and recognise the very valid role buy-to-let plays in the housing mix. Driving small landlords out of the market ultimately impacts tenants most.”

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Hometrack has revealed that the minimum income first-time buyers need to purchase a home in the UK’s largest cities has rocketed by 18% in the past three years.

Key Findings

• Average first-time buyers needs to earn £53,00 this is up from £45,000 three years ago.
• Income needed to buy
  • Liverpool £25,000
  • Bristol £58,826 (24% Increase)
  • Manchester £34,770 (24% Increase)
  • London £82,000

Richard Donnell, Insight Director at Hometrack, says: “House price growth continues to outpace earnings across 16 of the 20 cities covered by the index as buyers continue to bid up the cost of housing on the back of low mortgage rates and high levels of employment. The fastest growth is being recorded in the most affordable cities where prices are rising off a low base.

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The latest data from ARLA Propertymark has shown that the percentage of tenants experiencing rent increases was at the highest level ever recorded in August reaching 40% – up from 31% a month earlier.

David Cox, ARLA Propertymark Chief Executive, said: “As we’ve highlighted before, the impact of recent and ongoing tax changes continues to have a material impact on the buy-to-let market. Four in ten tenants saw their rents rise in August – the highest level we’ve seen since records began. Although it’s encouraging to see the number of properties available to rent rising, supply still isn’t anywhere near high enough to slow down the pace of rent rises. We need more homes to rent, and for Government to change its narrative and recognise the very valid role buy-to-let plays in the housing mix. Driving small landlords out of the market ultimately impacts tenants most.”

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Data from the Office for National Statistics on the UK housing market has revealed that average house prices in the UK have increased by 3.1% in the year to July 2018. The average UK house price was £231,000 in July 2018. This is £6,000 higher than in July 2017 and £2,000 higher than last month.

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The latest data  on UK housing from Halifax has shown that during the three months to August this year, average house prices increased by 3.7% when compared to the same period a year and the average house price now stands at £229,958.

Russell Galley, Managing Director, Halifax, said: “House prices picked up in August, with the annual rate of growth rising from 3.3% in July to 3.7%. With the average house price now £229,958 prices in the three months to August were also 1.9% higher than in the previous quarter.

While the pace of employment growth has recently slowed, a low unemployment rate and a gradual pickup in wage growth are helping to support household finances. This has been accompanied by interest rates still remaining at a historically low rate and a stable, yet constrained, supply of new homes onto the market further supporting house prices.”

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The latest PRS report from ARLA Propertymark has shown that the number of tenants looking for new homes increased to the highest level seen since September 2017.

Key Findings

• The number of new tenants registered per letting agent branch increased from 71 in June to 79 in July.
• Year on year, demand is up 13%
• Supply of available properties has fallen from 191 in June to 184.

David Cox, chief executive at ARLA Propertymark, said: “Buy-to-let investors are being pushed out of the market by increasing costs and continued regulatory change, and new landlords are being deterred from entering.

“Last month, an average of four landlords took their properties off the market per branch, up from three this time last year – and as supply falls, competition among tenants increases, which pushes up rent costs.

“Almost a third saw their rents rise last month, and although this figure was down from June, it’s still far too high. To put tenants back in the driving seat, we need more homes available to rent, and the only way this will be achieved is if the Government makes the market more attractive for BTL investors.”

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