Podcast Summary
Urban Markets Experience Fastest Property Price Growth Since Pandemic: Urban markets in the UK have seen the fastest property price growth since the pandemic, with major towns and cities outperforming the regions. London's growth rate is 7.1%.
The urban markets in the UK are currently experiencing the fastest growth in property prices since the pandemic. According to the latest data from Halifax, property prices have risen at their fastest rate since 2004, with an annual growth rate of 13%. Despite predictions that the pandemic would lead to a mass exodus from cities, major towns and cities are now outperforming the regions. This trend was predicted by Rob D in previous market updates, and it seems his argument was correct. Urban markets are now the strongest performing markets in the UK, with London seeing a growth rate of 7.1%. This is a significant change from the trend during the pandemic when people were predicted to move out of cities in large numbers. However, it seems that cities have bounced back strongly since lockdowns ended, and this trend is likely to continue.
Housing market growth and potential cooling down signs: Despite record growth, signs of market cooling down are emerging with decreased property viewings. Rent increases vary depending on data source and location.
The housing market is experiencing record growth, with both houses and flats seeing similar price growth rates for the first time in a long while. However, signs of a potential market cooling down are emerging, with a decrease in property viewings by 29% in June according to PropertyMark. This decrease could indicate a return to more normal market conditions. In the realm of rent, there seems to be conflicting data with the Office for National Statistics reporting a 3% increase in rents over the last 12 months, while The Guardian reports rent increases of up to 20% in certain areas like Manchester and London. The apparent discrepancy is due to the different data sets being measured - the ONS looks at all rents, while The Guardian focuses on newly let properties. Both sets of data are accurate, but provide different perspectives on the rental market. Stay tuned for more insights on these topics in upcoming podcasts.
Rent Prices Rising in UK Cities: Rent prices are surging in cities like Manchester and London due to high demand and fewer properties available. The trend is expected to continue, leading to broader rent increases nationwide.
There has been a significant increase in asking rents for new properties being marketed to rent, particularly in cities like Manchester and London. This trend is likely to lead to a broader increase in rents across the country as reported by the Office for National Statistics (ONS). The surge in demand for rental properties, as indicated by a 171% increase in inquiries in London compared to 2019, is driving up rents. Tenants are also more likely to extend their tenancies due to the competitive market. Additionally, the mortgage affordability test for residential mortgages has been scrapped, which could lead to more people entering the property market and potentially increasing demand for rental properties further. Overall, the rental market is showing strong signs of recovery and growth.
Changes in mortgage lending and housing regulations: The housing market is undergoing shifts in mortgage lending and government regulations, including the removal of stress tests and calls for more home ownership and social housing. Adaptability and awareness are crucial as Scotland and Wales plan to regulate holiday lets.
The housing market is experiencing changes, particularly in the realm of mortgage lending and government regulations. The removal of stress tests for residential mortgages may lead to looser lending criteria and potential market instability. The Joseph Rountree Foundation has called for policies to reduce the private rented sector and increase home ownership and social housing. Additionally, Scotland and Wales have announced plans for licensing and potential regulations on holiday lets. These changes highlight the need for adaptability and awareness in the housing market, as well as ongoing discussions around affordable housing and market regulation.
Property market challenges in Wales and UK: Despite challenges like falling home sales and long completion times, there's hope with fewer reported rogue landlords and effective use of government lists.
The property market in Wales and potentially the UK as a whole is facing significant challenges, with a high number of home sales falling through and an increase in the average time it takes to complete a transaction. This archaic system is leaving many people, both owner-occupiers and investors, feeling stressed and frustrated. Meanwhile, there is some positive news as it appears that the number of rogue landlords may be lower than reported, with only 56 property agents and landlords entered onto the government's rogue landlord list since April 2018. However, it's unclear if this list is being effectively used by councils, leaving the accuracy of the data in question. Overall, the property market remains a complex and challenging landscape, but there are reasons for optimism amidst the challenges.
The Complexity of Property Advice on TikTok: While some landlords on TikTok are problematic and not all advice is trustworthy, it's important to be cautious and consider other sources for reliable property information.
While there are certainly problematic landlords and inaccurate property advice on platforms like TikTok, the situation is more complex than it may seem. The number of criminal landlords is relatively small, but enforcement remains a challenge due to limited resources and ability of local authorities. On the other hand, not all advice on TikTok is trustworthy, and it's important to be cautious when seeking financial or property-related guidance from influencers. The mainstream media also has its share of inaccuracies when it comes to property matters, but it's usually less entertaining. To lighten the mood, Mike Winnet's YouTube channel offers a humorous take on questionable entrepreneurial claims on TikTok. Remember to submit your property-related questions to Property Hub for a chance to be featured on their Q&A segment. Until next time, stay informed and be cautious of where you get your property advice from.
