There was a lot of news to digest in May, with political announcements, a drop in inflation and a base rate on hold once again. Therefore you may have missed some of last month’s important home moving analysis. Here are 11 things we learnt about the property market in May.
1) Another rise in asking prices: Rightmove’s May House Price Index showed the UK’s average asking price continued its upward trend. Sellers are more confident for the fifth consecutive month, asking for 0.8% more. This equates to £2,807 extra, with the average asking price now at £375,131.
Sold price statistics
2) Annual house prices rise almost 2%: the Office for National Statistics (ONS) released its latest figures in May. It says the UK’s average house price had increased by 1.8% between March 2023 and March 2024. The average home now costs £283,000.
50 years of soaring values
3) Property’s upward trajectory highlighted: new analysis of Land Registry figures revealed an astonishing rise in property prices. The average UK house price has risen more than 3,048% in the last 50 years. In 1974, the average house price was just £8,915.
4) Scotland records big rent rises: ONS figures also showed UK rents have continued to rise year-on-year. The biggest uplift was in Scotland, where a 10% increase was recorded. There was an 8.2% annual rent rise in Wales and this figure was 8.9% in England.
5) The Renters’ Reform Bill ceases to exist: this much-debated Bill fell ahead of the General Election. It’s not dead in the water, however. It is thought both the Conservatives and Labour would resurrect this Bill after 4th July.
6) One property Bill did become law: the Leasehold & Freehold Reform Bill did gain Royal Assent before Parliament was dissolved. Expect it to become easier and cheaper to extend leases, buy freeholds and take over the management of leasehold blocks in England and Wales.
7) Shared ownership remains a mystery: when The Mortgage Lender asked first-time buyers what they knew about shared ownership, 65% couldn’t define the initiative correctly or they were unable to describe it at all. Additionally, 17% of first-time buyers thought that shared ownership meant co-owning with your family.
Rent controls a hot topic
8) A rent cap in Wales isn’t on the cards: with Scotland proposing rent caps as part of The Housing (Scotland) Bill and Labour flip flopping on the matter in England, it was left to Housing Secretary Julie James MS to clarify matters in Wales. She commented that rent controls hadn’t worked in Scotland, adding that more monitoring was needed before any changes in Wales.
9) First-time buyers set to get older: when Nationwide questioned more than 1,000 prospective first-time buyers, it found 20% thought they’d be buying their first home in their 40s. Additionally, 31% said saving for a deposit was their biggest barrier to homeownership, while 20% cited finding a property in their price range as the biggest hindrance.
Buyers push up prices in outlying areas
10) Rural is in demand: if additional analysis by Nationwide is anything to go by, rural living isn’t out of fashion. When looking at average house prices between December 2018 and December 2023, values in predominantly rural areas increased the most (22%). Prices in predominantly urban areas rose 17%, while urban areas with significant rural parts saw price growth of 19% over the same period.
11) Landlords feeling optimistic: research commissioned for Paragon’s PRS Trends report found the mood among property investors was positive. Of almost 800 landlords questioned, 43%, said that tenant demand is ‘very strong’. An additional 40% said that it is ‘quite strong’.
If you would like to know more about your local property market, please get in touch.
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