Latest: August property market report

High summer has seen the property market settle into its familiar seasonal pattern – holidays and family time overtaking the need to buy and sell property. August gave us a chance to chat with homeowners who want to come to market in September. As such, there was a lot of activity behind the scenes rather than in the statistics.

This was true of the latest Rightmove House Price Index. Its latest set of figures, released mid-August, showed the UK’s average asking price dropped +2% (-£7,360). We head into September with an average asking price of £364,999.

Regional differences in asking price adjustments

These national figures do, however, hide regional variances. The average asking price actually increased +0.6% in the North East. At the other end of the spectrum, the average asking price in London dropped -4.40%.

First-time buyers feel the moving stress

There have been multiple surveys that conclude people find moving home as stressful as a death or divorce. Now a new poll has focused on the experience of first-time buyers. The study, by law firm LPL, found just 20% of first-time buyers feel excited on their first property viewing.

The findings weren’t all doom and gloom. By the fourth and fifth property viewing, 47% felt enthusiastic. Sadly, stress levels increased the more properties were visited. Eagerness dipped to 30% at 6 to 10 viewings and to 25% at 11 to 20.

Staying with first-timer buyers, new research by The Private Office (TPO) showed how helping loved ones get on the housing ladder is a permanent fixture, not a passing trend. More than 2,000 adults aged 45 or older were questioned about attitudes to financial assistance. Of those asked, 51% had already given money to help a relative buy a home. This makes a property purchase the single biggest reason for family gifts.

Gifting doesn’t look set to change either. Almost every respondent (97%) felt it was difficult or very difficult for young people to buy a home without family support. As a result, 88% would consider helping children or grandchildren buy a property.

August also came with a warning for movers who are buying fixer-upper properties or wanting to personalise a home they’ve just moved into. While 70% of DIY enthusiasts say they’re undertaking work themselves to save money, it can be a false economy.

DIY downfalls revealed

The research, undertaken by BuildSafe, found 79% of DIYers underestimated how long the project would take, while 68% wished they’d planned for cost overruns and hidden costs caused by delays. More than half also commented they didn’t know how to manage tradespeople, while 43% did not realise how important it was to complete work in the correct sequence.

Handelsbanken’s annual Property Investor Report always provides good insights into the current rental market. Its latest report revealed rising costs are why 63% of UK real estate investors, property management professionals and landlords are increasing rents and carrying out more stringent tenant checks. 

On the rise: rents and running costs

For others, the landscape has proved more fatal. Of those questioned, 20% said they’d sold properties due to higher costs, while 19% had taken properties off the rental market. Additionally, 46% said higher costs had caused them to delay upgrades or improvement works.

What are new tenants paying in August? The most recent HomeLet Rental Index found the UK’s average rent is £1,369 per month. This is a +1.2% increase when compared to the last monitoring period. Scotland reported the biggest month-on-month rental increase, at +2.5%. Rents in the West Midlands increased by the smallest amount – +0.2%

If you would like to know more about your local property market, please get in touch.