The latest figures published by the Office for National Statistics (ONS) has found that employment rate remains at record high, beating last quarters previous record. The unemployment rate fell further to just 4% (a 43 year low). There were 32.39 million people in work, 42,000 more than for January to March 2018 and 313,000 more than for a year earlier.
Latest research from HomeLet (The UK’s largest tenant referencing agency) has seen on average rental prices across the UK continue to rise over Q2. Overall in the UK, rents have risen by 1.8%. Rents increased in 10 of the 12 areas of the country monitored by the HomeLet Rental Index between May and June 2018, with only Wales and the North East seeing a monthly decrease. London rose by 4.7% with an average rent of £1,596pcm. Experts predict demand for rental properties to remain high in next quarter, and HomeLet has warned that if there are any reductions in Landlords entering the the market this will continue to increase rents further as demand exceeds supply.
A recent survey conducted by Aegon had found that 42.5% of people currently renting their home think they will still be renting at the age of 70. With younger generations finding it harder to get on the property ladder, the UK is set to lose its claim of being a nation of homeowners as the population of lifetime tenant continues to rise. In the 10 years to April 2017, the percentage of households privately renting increased across all working age groups, according to the Family Resources Survey by DWP.
Data from the latest survey by Knight Frank has shown that
86% of housebuilders believe construction of 250,000 additional homes a year is the maximum achievable amount by 2022, falling short of the government’s 300,000 target
Only 1% of respondents, which included more than 100 developers that build almost three quarters of all newly-built homes across the UK every year, think 300,000 new homes each year is possible by 2022.
Head of residential development land at Knight Frank Justin Gaze commented “Whatever ministers decide, they must speak up soon if they are to avoid weighing on the supply of homes. The industry has shown itself capable of adapting to change, but businesses in every sector strain to operate amid policy uncertainty.”
David Fenton, head of regional land at Knight Frank, added: “Nationwide, housebuilding looks set to increase, underpinned by more evenly distributed house price growth and high levels of employment in regional cities. However, our survey indicates that scepticism prevails among housebuilders over whether it’s possible to deliver 300,000 additional homes a year, and ultimately they will only build what they can sell.
According to the latest Halifax house price index House prices grew by 1.8% bringing the average property priced in June to £225,654.
Russell Galley, managing director at Halifax, said: “House prices continue to remain broadly flat, with the annual rate of growth marginally slowing from 1.9% in May to 1.8% in June.
“Activity levels, like house price growth, have softened compared with the final months of last year. Mortgage approvals have been in the low range of 63,000 to 67,000 since the start of the year, whilst home sales have remained flat so far this year. This is in contrast to the continuing strength of the UK jobs market with job creation still strong and pressure on household finances easing as real income growth edges up.
“At the half way stage of the year the annual rate is within our forecast range of 0-3% for 2018. We continue to see very positive factors of continuing low mortgage rates, great affordability levels and a robust labour market. The continuing shortage of properties for sale should also continue to support price growth.”
Latest data released by Halifax has shown that the average cost of an apartment in the UK has risen by £1,251 per month over the past five years, increasing in value by £75,074 over the period.
Other Key Findings
Russell Galley, Managing Director, Halifax: “The continuing strength of the labour market is supporting house prices. In the three months to March the number of full-time employees increased by 202,000, the biggest rise in three years. We are also seeing pay growth edging up and consumer price inflation falling, and as a result the squeeze on real earnings has started to ease. With interest rates still very low we see mortgage affordability at very manageable levels providing a further underpinning to prices.”
The latest data from Nationwide has shown that UK annual house price growth was at 2%. With the capital as the lowest performing region in Q2, with prices down 1.9% year-on-year.
Key Findings
Robert Gardner, Nationwide’s Chief Economist, commented on the figures: “Annual house price growth fell to its slowest pace for five years in June. However, at 2% this was only modestly below the 2.4% recorded the previous month.
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 over that period. There are few signs of an imminent change. Surveyors continue to report subdued levels of new buyer enquiries, while the supply of properties on the market remains more of a trickle than a torrent.
The latest data from Halifax has revealed that house prices in the three months to May were 1.9% higher than the same period a year earlier with the average house price now standing at £224,439.
Russell Galley, Managing Director, Halifax, said: “ These latest price changes reflect a relatively subdued UK housing market. After a sharp rise in January, mortgage approvals have softened in the past three months. Whilst both newly agreed sales and new buyer enquiries are showing signs of stabilisation having fallen in recent months.
The continuing strength of the labour market is supporting house prices. In the three months to March the number of full-time employees increased by 202,000, the biggest rise in three years. We are also seeing pay growth edging up and consumer price inflation falling, and as a result the squeeze on real earnings has started to ease. With interest rates still very low we see mortgage affordability at very manageable levels providing a further underpinning to prices.”
The latest data and analysis from Nationwide has revealed the average price of a home in the UK now stands at £213,618.
Robert Gardner, Nationwide’s Chief Economist, said: “UK annual house price growth slowed modestly in May to 2.4%, from 2.6% in April. House prices fell by 0.2% over the month, after taking account of seasonal factors. Annual house price growth has been confined to a fairly narrow range of 2-3% over the past 12 months, suggesting little change in the balance between demand and supply in the market over that period. There are few signs of an imminent change. Surveyors continue to report subdued levels of new buyer enquiries, while the supply of properties on the market remains more of a trickle than a torrent.
The latest house price data released by Rightmove has revealed that prices of new-to-the-market property saw a 0.4% (+£1,228) rise this month pushing the national average to a new record of £305,732.
Key Findings
Keeping properties at their best ensures you’re getting the best rental amount achievable and minimises void periods. Over the years rental properties will show signs of wear and tear and we are offen asked when would be the best time to refurbish a property. This normally depends on the amount of tenants you have had moving in and out of the property as well as how the property was looked after. We recommend clients to refurbish their properties every 5-7 years which could include repainting and updating the flooring / furniture so as to ensure the property is looking its best and stays competitive in the open market.
