September has brought many developments in the U.K. property market, impacting buyers, sellers, landlords, and renters. With mortgage rates beginning to stabilise and significant legislative changes underway, everyone needs to stay informed.
In September, U.K. house prices surged by nearly £3,000, as reported by Rightmove. The average asking price for a home increased by 0.8%, reaching £370,759. This rise is notably higher than the long-term average increase for this time of year, typically around 0.4%.
Factors contributing to this boost include
- The recent drop in mortgage rates,
- Increased available properties and
- Faster growth in household earnings relative to inflation and house prices.
Buying: A Time for Cautious Optimism
Prospective buyers are relieved that mortgage rates are falling and the market is slowly adjusting. First-time buyers might now find more affordable entry points. However, despite this positive trend, there are still some uncertainties ahead. These include potential changes in the Bank of England’s base rate and upcoming announcements in the October Budget.
Tips for Buyers:
Shop Around for Mortgages: As more competitive mortgage products become available, it’s wise to compare offers and speak with a mortgage broker. Fixed-rate deals can provide peace of mind, especially with lingering economic uncertainties.
Check Your Long-Term Affordability: Ensure your monthly mortgage payments will be manageable, even if circumstances change. While interest rates are decreasing, lender affordability checks remain strict, so plan conservatively.
View our current properties for sale on our website.
Selling: Setting Realistic Expectations
According to Rightmove, the time it takes to sell a property has increased, with average homes now taking around 60 days to sell. Buyers are more deliberate in their choices, so sellers must be patient and ensure their properties stand out in a competitive market.
Tips for Sellers:
- Focus on Presentation: Staging your home well can significantly improve its appeal. If possible, invest in minor repairs, fresh paint, and professional staging. First impressions count, and well-presented homes tend to sell faster.
- Price to Market Conditions: Avoid overpricing. Properties that are priced too high can languish, leaving you frustrated.
- Be Flexible with Viewings: Make your property accessible for viewings by accommodating various schedules. The easier it is to view your home, the faster you will likely attract serious buyers.
For sellers interested in tracking house prices, several sources provide valuable insights:
- Halifax publishes a monthly house price index based on its mortgage data.
- The Office for National Statistics (ONS) uses data from the Land Registry to offer the most accurate measure of house prices, though it has a three-month delay.
- Nationwide and Zoopla also track house prices. Nationwide reported a 0.2% decrease in August but a 2.4% annual increase, with average prices at £265,375. Zoopla’s data showed a 0.5% rise in July, with average prices now at £266,400.
Each source uses different methods to track prices, so it’s beneficial to consider them all for a comprehensive market overview.
Properly is best placed to offer information on house prices, tips and advice. Please do call us on 0207 459 4400 or email [email protected].
Landlords: Preparing for New Regulations
September 2024 is a crucial period for landlords, with the Renters’ Reform Bill expected to alter the landscape significantly. The abolition of Section 21 no-fault evictions and stricter rent regulations will reshape how landlords manage their properties.
In addition, landlords need to start preparing for the 2030 requirement that all rental properties meet a minimum Energy Performance Certificate (EPC) rating of “C.”
Tips for Landlords:
- Stay Informed: Make sure you understand the implications of the Renters’ Reform Bill. Joining a landlord association or investing in property management could help you stay on top of legal updates.
- Plan for Energy Efficiency: Upgrade your rental property to meet the future EPC requirements. Energy-efficient properties will not only comply with regulations but could also be more attractive to eco-conscious tenants.
- Retain Good Tenants: With increasing tenant rights, focusing on tenant retention is more important now than ever. Offering longer tenancies or incentives like minor upgrades can help maintain a stable rental income.
- Consider Professional Management: As the legislative environment becomes more complex, it may be worth hiring a professional property management company to handle compliance and day-to-day operations.
For landlords considering property management, call us on 0207 459 4400 or email [email protected] for information on our services.
Renters: Higher Costs, More Rights
While renters face rising rents and high property demand, the Renters’ Reform Bill brings new protections. The abolition of Section 21 evictions is a significant win for renters, offering more stability. However, this could also lead to landlords being more selective.
Tips for Renters:
- Know Your Rights: Introducing the Renters’ Reform Bill will give tenants more power. Educate yourself about your rights, including how landlords can and cannot evict you and what standards they must meet.
- Be Prepared to Act Fast: Competition for rental properties remains fierce. Have your documents and references ready to move quickly when a property becomes available.
- Consider Flexibility: If you need help finding a rental in a competitive area, consider expanding your search radius or being flexible with your preferred moving date. Being adaptable can open up more options.
View our latest properties for rent on our website.
The Renters’ Reform Bill: Major Changes Ahead
The Renters’ Reform Bill is one of the most significant pieces of legislation affecting the private rental sector in decades. Aimed at giving tenants more protection, the bill is expected to abolish Section 21 no-fault evictions, introduce stricter rent increase controls, and enforce higher standards of accommodation.
Key Provisions:
- Ban on No-Fault Evictions: Landlords can no longer evict tenants without providing a reason, making it harder for them to reclaim properties. This brings more stability for renters but could lead to landlords being more cautious in selecting tenants.
- Limits on Rent Increases: Landlords can increase rents only once a year, and any increase must reflect market rates.
- Stricter Housing Standards: Landlords can be penalised up to £7,000 for properties that fail to meet a minimum standard.
For more information on the Renters’ Reform Bill, please speak with a member of our lettings team at Properly. We ensure we are always up to date with the latest legislation and developments and can efficiently assist landlords and tenants.
September 2024 sees a mix of cautious optimism and continued challenges in the U.K. property market. Falling mortgage rates provide some relief for buyers, while sellers need to adjust to longer sale times.
Landlords, in particular, must navigate an evolving regulatory landscape, with the Renters’ Reform Bill set to bring about significant changes. Renters, meanwhile, can look forward to stronger protections, but with higher rents and increased competition.
We are delighted to bring you our property market update each month. Properly are your local estate agent across the U.K.
Call 0207 459 4400 or email [email protected] to speak with a member of our friendly and experienced team.
