UK house prices increase as recovery gathers pace

UK house prices increase as recovery gathers pace – industry reactions

Landlord

Posted in Jul 02 , 2024

UK house prices increase as recovery gathers pace – industry reactions

UK house prices increased for their second consecutive month in April, latest official figures show, as the housing market continues to show signs of recovery as the economy improves.

The average UK house price increased by 1.1 per cent in the 12 months to April, according to a provisional estimate from the Office for National Statistics (ONS).

This figure accelerated from 0.9% annual growth in the year to March and marked the second month in a row with an annual increase, after eight straight months of declines.

Sentiment in the housing market has shown signs of improvement this year despite mortgage rate remaining elevated and the Bank of England continuing to hold interest rates at 5.25%.

Separate data from the ONS yesterday revealed inflation returned to the government’s 2% target in May for the first time since July 2021.
However, the central bank is still expected to wait until at least August to cut interest rates. Its next meeting is scheduled this morning.

The ONS said house prices rose by 0.6% in England, 0.4% in Wales and 4.5 per cent in Scotland in the year to April.

The data also showed that average UK private rents increased by 8.7% in the 12 months to May, slowing from an 8.9% increase in April – which came after a rise of 9.2% in March.

https://propertyindustryeye.com/uk-house-prices-increase-as-recovery-gathers-pace-industry-reactions/

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Survey Says - Half of Landlords Looking to buy properties

Apparently almost 50% of landlords intend to purchase new BTL properties over the next 12 months, according to a BTL specialist lender’s latest survey.44% of respondents said they will be purchasing properties over the next twelve months which has significantly increased from the lender’s last survey in December last year which found only 32% intended to buy properties. Of those landlords wishing to buy properties 60% cited the main reason was to increase their portfolio, with 31% saying it was because of the increased demand from tenants; whereas in the previous survey it was 26%. There was 12% who said they were intending to buy properties because they felt house prices would be falling. Of those landlords intending to purchase more properties 40% have eleven plus properties, 42% own between four to ten properties. Small landlords with one to three properties make up18% of the landlords intending to buy properties in the next 12 months. Landlords’ confidence levels in purchasing properties differ in various parts of the country, such as a higher percentage of landlords – 28% would buy properties in the South East whereas just 13% were interested making purchases in the capital over the next twelve months. However landlords’ confidence in other areas were around the same level as the South East in the Midlands, the East of England and in the North with just under a quarter stating they intend to buy properties. The survey also found that 16% of landlords had not made any plans as to whether they would or would not purchase more properties, however this is lower than the previous survey’s findings where 25% said they were undecided. 40% said they had no intention in buying extra properties .However just under 30% stated they will be selling some of their properties over the next twelve months because of increasing concerns over variations in mortgage interest rates, landlord taxation and problems with evicting tenants. The lender’s sales and distribution director, says: “Despite the various pressures faced by landlords, there is still an appetite for further house purchases. The increase demonstrates the continued attractiveness of buy-to-let as a long-term investment strategy, which is supported by the strong demand for rental properties.” https://www.pims.co.uk/news-article/half_of_landlords_looking_to_buy/3529/

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What is currently happening in the UK property market

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UK house prices increase as recovery gathers pace – industry reactions

UK house prices increased for their second consecutive month in April, latest official figures show, as the housing market continues to show signs of recovery as the economy improves. The average UK house price increased by 1.1 per cent in the 12 months to April, according to a provisional estimate from the Office for National Statistics (ONS). This figure accelerated from 0.9% annual growth in the year to March and marked the second month in a row with an annual increase, after eight straight months of declines. Sentiment in the housing market has shown signs of improvement this year despite mortgage rate remaining elevated and the Bank of England continuing to hold interest rates at 5.25%. Separate data from the ONS yesterday revealed inflation returned to the government’s 2% target in May for the first time since July 2021. However, the central bank is still expected to wait until at least August to cut interest rates. Its next meeting is scheduled this morning. The ONS said house prices rose by 0.6% in England, 0.4% in Wales and 4.5 per cent in Scotland in the year to April. The data also showed that average UK private rents increased by 8.7% in the 12 months to May, slowing from an 8.9% increase in April – which came after a rise of 9.2% in March. https://propertyindustryeye.com/uk-house-prices-increase-as-recovery-gathers-pace-industry-reactions/

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