Our Residential Manager, Paula, has put together a round-up of the latest news and views from the rental world, from rising prices to developments right here in the UK’s City of Culture…
The latest lender index has shown residential property prices as having risen during October, with a 1.4% increase - seeing a yearly rise of 5.2%. The average cost of a home has now reached £217,411.
Home sales are now stabilising following the unbalance earlier in the year due to the changes to stamp duty in April, which saw a race among some landlords to secure properties before this took effect. Interest in investment properties declined over two quarters, though this is now slowly returning.
Growth in house prices is expected to stunt a little in the coming months, though with low mortgage rates and a shortage in the number of properties available, price levels should be supported.
As inflation rises, people will naturally be more anxious about money, which may result in a slowing down of transactions, whilst the High Court’s Article 50 ruling may see uncertainty in the markets prolonged even further.
The demand for rental properties is on the rise, as, whilst house sales seem to plod along, the uncertainty following the UK’s vote to leave the European Union has seen many people opting to rent instead of purchase a property, a trend which is likely to continue until economic stability is resumed.
This rise in demand for rental properties has seen some areas of Hull with tenants queuing up, though the market currently faces a number of challenges; particularly in terms of the newly imposed stamp duty on additional properties and the downsides it has for some landlords.
The future looks bright for Hull, however. There’s a tangible buzz surrounding investment property in the city, with developments in and around Humber Street seeking to attract investors from outside the city as well as local landlords. The Egremont Russet and Fruit Market developments offer two examples, with this type of development exactly what Hull is now craving.