The latest Homelet Rental Index Report and Rightmove House Price Index are now available for viewing. The reports come out monthly and offer insight into the sales and rental market nationally.
Homelet have reported that for March 2018, average rents in the UK rose by just under 1% with average rents now at £912 a month. In the same time period, rents in London have risen by 1.5% with rents at £1,569 per month. At a regional level, the largest increases can be seen in the East Midlands, with the areas rent prices up 3.3% on last years figures. [Source: Homelet]
There is good news for tenants too as, year on year, rent hikes are down. In 2015, 31% of tenants had rent increases, and 29% in 2016; in 2017 this figure had reduced to 25% and most importantly, 19% this year. [Source: ARLA/Propertymark]
Interesting data shows also that currently, landlords are making the decision to invest in their current properties rather than add to existing portfolios. Record numbers of landlords are seemingly mortgaging to make improvements to their properties, perhaps due to stamp duty and to improve yields on their current investments. With average rents growing in seven of eight regions in Britain landlords are looking to expand their current portfolio yields rather than increasing the numbers in their portfolio. [Source: Property Industry Eye]
Recent figures show that the price of properties coming to market has reached a record high with national average asking price rising to £305,732. Rightmove itself has seen record visits to their website in March, showing its busiest month ever, indicating strong interest in the property market right now making it a great time to think about selling.
Analysis shows though that the actual sale price being achieved nationally is at 96.7% of asking price, showing that some sellers are asking for unrealistic prices, but taking a chance whilst interest is high. This gap has risen from 2.8% to 3.3% over the last two years meaning some agents are being unrealistic with their clients and as such receiving lower offers and final sale prices.
You should be cautious therefore, when choosing an agent and should not base your decision on the valuer offering the highest value. You should choose an agent that prices your property realistically, based on comparable evidence and understands the market requirements at any given time. With the average time on market currently 61 days, incorrect pricing can lead to your property being on the market much longer and detracting interest from your sale.
To find what’s happening to property prices for both sales and lettings in your local area, contact your local Hunters team who will be happy to help.