>> Key property market highlights:

• Year-on-year, house price inflation has remained at a steady 1.3%*
• Northern regions continue to outperform, with the North East recording yearly growth of up to 3.2%*
• Rental prices have increased by 2.1% year-on-year^
• Average rent on new lets is £1,325 per month^

The UK property market demonstrates resilience as we approach the summer months. Despite ongoing uncertainty caused by conflict in the Middle East, buyers continue to drive market activity. Annual house price inflation is currently at 1.3% which suggests price stability, with the average UK house price now standing at £271,500*. 

The time it takes to sell a home has increased by a day compared to last year, which indicates that households looking to move are still finding buyers at broadly the same pace as last year. However, higher mortgage rates have caused consumers to be more cautious*. 

Regional disparities remain evident, with the North East leading in annual price growth at 3.2%, supported by affordability and strong local demand. Conversely, London and the South East are experiencing a slight -0.2% dip in price due to affordability pressures.* 

What this means for sellers

The supply of homes for sale has increased, with 5% more properties listed compared to last year.* This increase means buyers have more choice, highlighting the need for seller’s properties to be showcased in the best light and, most importantly, to price them accurately from the start.  

While buyer enquiries are down 2% compared to last year, there has been a recovery since Easter as mortgage rates ease, spurring on buyer activity.* Realistically priced homes continue to attract significant interest and sell well. However, overpriced properties risk prolonged periods on the market.  

What this means for buyers

If you're planning to buy a new home, the current market dynamics are advantageous. With more properties available compared to last year, this means you may have a broader selection when looking for your ideal property and may have better negotiation opportunities as a result. * 

Mortgage rates did climb in March due to recent geopolitical trends, which in turn potentially dampened consumer confidence. However, the market is showing signs of recovery as mortgage rates begin to ease from their March peak. 

For well-prepared and realistic buyers, the market now provides more flexibility. Sellers recognise that buyers have greater negotiating leverage than a year ago. With a larger inventory of homes, buyers have more opportunity to be selective and find a property that truly meets their needs without feeling rushed.*  

Your regional property market overview

The UK property market shows a clear regional divide, with more affordable northern areas outperforming the pricier south of England. The North East leads with a 3.2% annual price increase, followed by the North West at 3.1% and, Scotland at 2.6%. These regions benefit from better affordability, maintaining buyer demand despite rising mortgage costs.* 

In contrast, London and the South East are experiencing slight price drops of -0.2%, while the South West has seen a minimal increase of +0.1%. The East of England shows modest growth at 0.5%, with the East and West Midlands seeing gains of 1.3% and 2.0% respectively. These figures indicate that affordability issues are curbing demand in southern regions.* 

Wales is performing strongly, with annual house price inflation at 2.3%, exceeding the UK average of 1.3%. Cardiff's property values have risen by 1.2% over the past year, with an average price of £257,600.* Wales's affordability compared to England continues to draw buyers seeking better value. 

Scotland also surpasses the national average, with a 2.6% annual growth. Edinburgh's prices have increased by 1.6% year-on-year, averaging £281,200, while Glasgow records a 2.9% growth with an average price of £164,900.* The affordability of Scottish homes remains attractive, especially for first-time buyers. 

Your UK rental market snapshot

The latest rental index indicates that the average rent in the UK is now £1,325 per calendar month (pcm). This reflects a 2.1% increase compared to last year and a 1.1% rise month-on-month.^ 

Excluding London, the average rent for new lets has seen a slight increase of 0.9% month-on-month, reaching £1,135 pcm. These rents are also 1.8% higher than they were a year ago, which underscores the ongoing demand in the rental market.^ 

In London, average rents have climbed to £2,128 pcm, marking a 1.5% increase from the previous month and a 2.3% rise year-on-year. The rental market in the capital shows no signs of slowing down, as demand continues to exceed the available supply.^ 

The North East and Scotland are still experiencing the most robust annual rental growth, with rents increasing by 4.9% and 3.7% respectively, followed by the North West at 2.7%.^ This trend suggests a strong rental market in these regions, supported by consistent tenant demand. 

In contrast, the East Midlands and the South East are seeing more moderate rental increases, with rises of 1.0% and 0.5% year-on-year respectively. This brings the average rents in these regions to £915 in the East Midlands and £1,431 in the South East.^ 

It's important to note that the Renters' Rights Act is now in effect, bringing significant changes to the private rented sector in England. Key changes include the abolishment of Section 21 'no-fault' evictions, which provides tenants with greater security. Landlords still have grounds for possession, and for most landlords there should be little impact day-to-day. Landlords they must ensure their properties and practices comply with the new requirements. 

If you're a landlord, seeking timely advice on these changes is crucial. Our experienced team is available to assist you through this transition.