What’s happening to house prices in the UK?
May 10, 2023
House prices rose again in the UK in April, a monthly change of +0.2% from March with an annual change of 1.7%. Rightmove commented on the UK being a “more settled market” now than those of the pandemic years. So, if you’re a property investor looking to buy UK investment property what does this mean for you?
Certainly, we do seem to be returning to some kind of post-pandemic normality in the buyer’s market. According to Rightmove demand for homes is up 8% from 2019 levels and houses are generally selling faster than they did in 2019 with an average of 12 days on the market. Demand appears to be most concentrated in what we call ‘first time buyer homes’ – properties with two bedrooms or less.
Of course, there is no such return to 2019 levels in the rental market with rents currently at record highs – and it’s this that could be the main reason driving the volume of house price sales – first time buyers are looking to accelerate their purchases to avoid paying higher and higher rents. Indeed, this would account for the higher sales volumes in the lower price bracket which has reached a record price in April – an average price of £224,963.
Propertymark reported in April that there are ten times the number of renters per available properties; UK agencies seeing a deluge of tenants competing for stock. This demand, as evidenced in the stats is driving both rental and sales prices upwards.
If you’re actively looking to invest in the UK market now, we have launched a new development in the UK midlands in the beautiful market town of Newark aimed at young professionals; studios from £132,500 with only a 10% deposit needed and over a 6.7% yield. The ideal investment for property investors looking to dip their toes in the UK market.
Visit our website for more details of UK property investment opportunities here it’s a very good time to be investing in the UK.
RICHARD BRADSTOCK
about the AUTHOR
RPA’s founder, Richard has worked in residential development investment for 20 years and oversees the general running of the business ensuring the RPA Group retains true to its founding principles. Over his career Richard has built an incredible network of international property investors and like-minded industry professionals. The RPA Group was born out of a duty of care to provide property investors with an industry-leading and integral service, one that connects investors with quality and desirable investment opportunities, whilst providing reliable and trustworthy market commentary and analysis alongside, enabling investors to make the best, most-educated decisions for them.