The time has come, once again, to delve deeper into the headlines in our industry news round-up – and there’s been plenty on the agenda throughout July.
From planning and policy to market trends, here’s a rundown of everything you need to know…
Housing boom sees Kirklees homes soar in value by almost £30,000
The nationwide demand for property was up almost 60% over the last two years, while supply fell to 40% below the norm – causing a surge in the cost of housing.
The biggest rises across the country were seen in Wales and the South West, up 22% and 20% respectively. And it’s a similar picture for Yorkshire and the Humber, with a 19% increase – as properties in Kirklees are now worth £29,600 higher on average in comparison to 2020. Zoopla’s data-rich, interactive map lets you look at the regional changes even further afield.
Demand for first-time buyer properties is rising
A recent Rightmove survey identified that house prices and soaring energy bills are the biggest challenges facing first-time buyers today. Average asking prices for a property with two bedrooms are up 13% since July 2020, with the deposit required also standing £2,560 higher.
Yet, despite affordability constraints, enquiries from buyers trying to make their way onto the property ladder are on the increase – up 35% compared to the more stable market in 2019.
Build-to-Rent scheme continues to attract investment
The UK’s Build-to-Rent scheme has received just shy of £9bn in investment since the onset of COVID-19, and this positive momentum is set to continue throughout the remainder of 2022 – with a further £3.1bn worth of robust income likely to complete by the end of the year.
This is good indication that rental growth across the UK is at a multi-year high, despite continued build cost inflation andan increasingly challenging economic backdrop across the board.
Proposals reach parliament to help reform the rental sector
The UK Government has released the ‘A fairer private rented sector’ white paper, which sets out long-term visions for the industry that deliver a better deal for tenants. Plans include to:
Abolish Section 21 ‘no-fault’ evictions and introduce a simpler tenancy structure
Apply the Decent Homes Standard to the PRS for the first time
Introduce a new Property Portal to help landlords understand their obligations
Establish a housing ombudsman covering all PRS landlords and providing redress for tenants
Alongside this initial white paper, the Government is also set to publish a further six documents to augment its plans.
Although it’s unlikely these proposals will become law until spring 2023, this will introduce seismic changes to the renting and management of homes – that will provide further structure and peace of mind for renters.
Plus, as a landlord, If you have a trusted lettings agent, whose job it is to stay informed of the legislation and comply once enforced, you’ll be in very safe and capable hands.
If you want to discuss any of the news detailed above, please don’t hesitate to get in touch – we’d be happy to help with any queries or concerns.