Rising residential rents in the private sector and increasing house prices – albeit slowly – suggest a healthy enough property market. But a drop in the number of young home owners, together with a lack of confidence in the construction industry are taking their toll.
Rental increase for landlords
UK landlords learned this month rents in the private sector have increased by 1.02% over the past 12 months. It brings the average rise per rental property to an annual £1,210.
The news comes from the Landay rental index which showed that the average percentage rise in London over the past year was just 0.61% compared to 1.24% outside the capital.
In terms of countries, Wales fared best with an annual increase of 1.77%, Northern Ireland was next with 1.51 per cent. Scotland had a rise of 1.46%, while house prices in England rose by 0.98%.
Fewer young people buying their own home
And it seems rents in the UK will continue to increase in the future, according to figures from the government’s Office of National Statistics (ONS). Latest research shows 10% fewer people aged 22 to 29 own their own home compared to almost a decade ago. In 2017, there was 27 per cent; in 2008 the figure was 37%.
The fall has been blamed on the difficulty of saving for a deposit, as well as the rising value of property, particularly in cities, and London in particular.
House prices fall in UK
The value of the average house in the UK is now £225,995, says the Halifax. That’s a monthly fall of 1.4%. Despite this the September figure is still 2.4% higher than the same time last year.
Some housing analysts say the Halifax monthly UK-wide report paints a distorted picture. That’s because in many regions house prices are rising whereas in London they’re falling.
Fears also hitting construction market
According to a survey earlier this month by Data firm IHS Markit, purchasing in the construction market fell to 52.1 in September, from 52.9 the previous month. Confidence amongst purchasing managers was also the second lowest it’s been in five years
There were positives too though. The construction industry has experienced the fastest employment growth since the end of 2015. This is due to more trainees and apprentices joining the sector. New orders are also strong, says the report.
For the latest updates and takes on what’s happening in the UK property market, check out our Sourced blog on a regular basis. You’ll find lots of advice and information on our website and there’s always someone around to have a chat with if you like what you see. Call us on 0333 123 1330 or visit Source Property website.
