Present property information headlines have a tendency to color an image of falling home costs. However a narrative in Which? journal on the 1st of December indicated that common costs – primarily based on official Land Registry figures – have fallen by solely 0.1% prior to now 12 months. The common value of a house within the UK stays near the all-time excessive of £293,000 recorded in November final yr.
In opposition to that background, let’s take a peek at a few of the different property information.
Home Value Index: November 2023
When it compiled its home value index for November, the net listings web site Zoopla recorded a considerably steeper annual dip in common home costs – down 1.2% to £264,600 in contrast with the typical value only one yr in the past.
Though rising mortgage rates of interest have dampened demand, says Zoopla, the quantity of transactions holds moderately regular because the variety of houses available on the market reached a six-year excessive.
This has created one thing of a patrons’ market, with sellers granting reductions of a median of 5.5% or £18,000 on the marketed value.
Zoopla forecasts a continued decline in common costs throughout the course of 2024, however the fall might be arrested if mortgage rates of interest are lowered.
Flat conversions could not want planning permission
Throughout his Autumn Assertion to Parliament on the 25th of November, Chancellor Jeremy Hunt revealed authorities plans to abolish the necessity for planning permission when house owners select to transform a single home into two flats.
In its protection of the proposals, the Mail On-line acknowledged that the transfer is proving controversial as a result of it may deny native communities the fitting of enter to modifications that would alter the character of the realm.
However, the federal government – and supporters of the plans – argues that the proposed “permitted growth proper” would encourage a rise within the provide of houses each for lease and on the market whereas additionally serving to to decrease the typical value of extra inexpensive dwellings.
Slashing the necessity for crimson tape may assist to extend the variety of inexpensive houses, say commentators, though a better variety of residents will exacerbate parking issues and possibly invite opposition from these already dwelling within the neighbourhood.
As much as 50% of southern England landlords seeking to promote up
The exodus of landlords from the purchase to let market continues apace – although with notable variations within the south of England in contrast with the north, argued an article in Landlord Zone on the 30th of November.
Landlords in components of southern England, for instance, are promoting up and leaving the market altogether on the alarming price of 52%. Whereas half of the present variety of landlords are leaving on this a part of the nation, the speed is “solely” 26% and 22% within the northern conurbations of Leeds and Manchester respectively. Throughout the nation as an entire, the proportion of landlords giving up their purchase to let companies is round 17%.
The explanations for the north-south divide are many and different. Not less than one purpose superior for the distinction in attitudes amongst landlords is that the north has seen a better price of progress within the value of residential property prior to now yr – creating the impression of it being a safer place for funding than the south of the nation.
Older renters transferring to cheaper areas and smaller houses
In opposition to the background of rising rents and a dearth of accessible properties, older tenants want to cheaper components of the nation and usually smaller houses wherein to maneuver, in accordance with a narrative in Landlord At the moment on the 30th of November.
The pattern is supported by figures on the varieties of tenancy agreed by older renters with incomes of between £30,000 and £70,000 a yr. On this pattern, a current survey indicated that throughout the first six months of this yr fewer than half of recent tenancies had been for houses with three or extra bedrooms (the rest had been for one and two-bedroom rental properties.
Throughout the identical interval in 2020, nevertheless, 57% of recent tenancies had been for houses providing three or extra bedrooms.
