The current house price growth sits at 5.4% with supply still down 23% which is slightly lower than previous months. However, it is still up a whopping 80% compared to 2017-19.
This has really been driven by people ‘searching for space’ particularly in the London area with families looking for more outside space. This has really been polarised with demand in outer London running 86% ahead of 2017-19.
We still expect the property market to continue pushing forward and reach above the 6% mark as a whole, with certain areas particularly the North West, to reach new heights.
This should then start to slow down as we approach Q4 and head into Christmas, coupled with the remaining stamp duty holiday to finish at the end of September.
The Rental Market
Another record was broken! The national average for rents has now reached £1,000 PCM.
If you look at the table below, you will notice that average rents are 2.6% higher now compared to the first quarter of this year. Importantly, annual change is also up 6.2% compared to last year, which is the biggest annual jump recorded by Rightmove.
London is the only region where rents dropped lower than this time last year but they are starting to recover, increasing for the first time this quarter since the pandemic began.
The younger professionals who may have moved back home during the lockdown are looking to get back to normality. If you put this alongside the growing number of commuters who are heading back into the office, we expect to see the rental market to continue to grow over the coming months.
This however is going to put more strain on the demand for rental property and therefore continue to push rents up. There has already been evidence of this, especially within London and other city centres across the UK.
City Centres Bounce Back
We are now starting to see a surge in people looking to venture back into the cities, due to offices starting to open alongside the nightlife, bars and restaurants opening up. As you will see from the table below, the demand for city-centre apartments has increased with the likes of Manchester witnessing the biggest increase of 37% compared to June last year.
We feel that rental demand in city centres is only going to continue to increase. If we look at the biggest demographic of renters, which is younger working professionals, they all want to get back to normality and be close to all the bars, restaurants and nightlife.
Importantly, our lettings team are witnessing first hand the rate of enquiries coming into us and the time it is taking for apartments to rent out, is almost 50% quicker than what we saw three months ago.
POTM – Peelers Yard, Manchester
Exclusive to Flambard Williams
Comprising of 73, 1 and 2 bedroom apartments, designed with luxury living in mind and starting from £220,00 (WAY below market value for the area). Less than a 5-minute walk to Manchester Victoria train station and literally on the doorstep of Ancoats and the Northern Quarter, it is fantastically located.
Prices from £220,000 | Only 20% to exchange | £1bn regeneration area | Gross yields expected 5-6% | Luxury finishes | Completion Q3 2023 | 2 minute walk to Ancoats
If you would like to find out more about our POTM Peelers Yard then please fill out the form below.
Making 300% in the Property Market
Live Webinar – 7th September at 1pm
Employee of the Month – Angelene Pershad
This month we have to show our appreciation to Angelene who heads up our lettings side of the business.
We have had a number of completions in No.1 Trafford Wharf, Manchester so Angelene has been organizing all the furniture, hand over keys, and viewings to get the apartments tenanted as quickly as possible for our clients.
Angelene has now successfully let a number of apartments in the development whilst juggling the existing tenants we have across both Manchester and Liverpool. Keep up the fantastic work Angelene, your doing great!
To speak directly to a specialist agent about any of the topics above or any general questions you may have please complete the form below.