July Property Market Analysis

13 days ago
July Property Market Analysis

June is often a liminal time in the property market. The spring Bank Holidays are a distant memory, vacations are drawing closer and attentions start to turn elsewhere. Rest assured, deals are still being done and home movers remain active in the market.  

The seasonal conditions actually create an incredibly stable market, as the most recent data from Rightmove shows. The portal records the asking price trends and publishes them in its monthly House Price Index. There was minimal movement in June, with the average price of a property coming to the market decreasing by just £21 this month – a figure it records as a 0.0% change.  

Sales & buyer demand higher now than in 2023

Additional figures from Rightmove reinforce that summer is still a great time to be buying and selling property. Over the last four weeks, the portal says the number of sales being agreed has stayed steady at 6% higher than a year ago. There’s additional good news in the shape of buyer sentiment. Demand among purchasers is now 5% higher than in 2023.  

Sale & rent values stabilise 

Final sold prices are also holding firm. The Nationwide’s June House Price Index indicated that the UK’s average house price increased by 0.2% in June. The building society says buyers now pay an average of £266,064 for a property.   

What about rental values? The headline from the latest HomeLet Rental Index claims rents are rising at almost half the speed there was in 2023. The annual rate of growth is 5.7% – a figure we may see drop as 2024 progresses.   

In June, the UK’s average monthly rent rose 0.2% – that’s equivalent to £3 more. This was the same amount that rents rose in May, illustrating that the momentum behind substantial uplift has petered out. As of June, HomeLet says tenants in the UK are paying an average monthly rent of £1,299.  

Although rent rises are waning, the price tenants pay continues to creep upwards. This may explain why they are keen to cut costs elsewhere. It appears the focus is on reducing spend on energy bills, with a new report revealing how tenants want to achieve this.   

According to Handelsbanken’s latest annual Property Investor Report, 58% of portfolio landlords have been asked for rentals that have an EPC rating of C – two grades higher than the legally-required E.  A higher percentage – 92% – of landlords had experienced tenants requesting sustainable features, including heat pumps, solar generators and EV chargers.   

EPC ratings adversely affect energy bills

Handelsbanken’s findings make more sense when combined with analysis from Rightmove. The portal’s research highlighted how energy bills can be slashed by living in a more energy efficient home. Rightmove said an A-rated home had annual energy bills of just £508. This compared to £1,669 for a C rated home, £2,340 for a D graded property and £5,674 where the EPC was G.  

Samsung’s Smart Home Buyers Index 2024 also highlighted how the general public are increasingly linking energy efficiency at home to cost savings. Of those surveyed, 79% said that they want a smart home and that they’d pay a 7.7% premium on the average UK house price for the privilege.   

Money savings via smart homes

Underpinning the desire for a smart home was the financial savings people could achieve. In fact, 63% of survey participants wanted cost savings through technology. Additionally, around 70% of respondents highlighted energy efficiency as a key motivation in using smart technology and 84% wanting to save money on their energy bills.  

Samsung’s analysis of search volumes found searches for smart energy appliances rose nearly 60% from April 2023 to April 2024. Search volumes for air source heat pumps increased the most – 173% up year-on-year. This overtook searches for smart meters.   

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

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