According to Home.co.uk’s latest market analysis, typical time in market has increased slightly from the record low set in April, but remains very low by historical standards. Inventory levels are also recovering from a record low reached in January 2022, but remain well below the 5-year average. The monthly supply of new instructions shows an overall increase of 9% as record prices encourage more sellers, with the biggest increase being in the South West (where prices have risen the most over the past 12 months).
Therefore, the expected rally in selling stock is occurring steadily, as well as a return to more normal market conditions after last year’s buying frenzy triggered by artificial stimuli, but that cannot be said. as much from the rental sector. Indeed, the number of properties available for rent is down overall (-27% over the last 12 months).
This is mainly due to the sharp drop in Greater London which is down 51% over the same period. The effect of this rental drought on rents in Greater London is evident with annualized increases averaging 25.9%, but well above those in more central boroughs.
As rental yields rise, we expect demand for UK property to remain high and possibly increase through to 2023 as investors (especially businesses that can more effectively circumvent the capital gains tax) seek the relatively safe returns offered by bricks and mortar, facilitated by negative investments. real interest rates.
Average annualized mix-adjusted asking price growth in England and Wales is now 5.2%; in August 2021, the annualized rate of increase in house prices was 7.6%.