September has brought a mix of developments in the UK property market, impacting buyers, sellers, landlords, and renters. With mortgage rates beginning to stabilise it's essential for everyone to stay informed.
In September, UK house prices surged by nearly £3,000, as reported by Rightmove. The average asking price for a home increased by 0.8%, reaching £370,759. This rise is notably higher than the long-term average increase for this time of year, which is typically around 0.4%.
Factors contributing to this boost include the recent drop in mortgage rates, an increase in available properties, and faster growth in household earnings relative to inflation and house prices.
Here’s an overview of the key trends shaping the market, along with some practical tips for navigating these changes.
Buying: A Time for Cautious Optimism
For prospective buyers, there is some relief as mortgage rates are falling and the market is slowly adjusting. First-time buyers, in particular, might now find more affordable entry points. However, despite this positive trend, there are still some uncertainties ahead. These include potential changes in the Bank of England’s base rate and upcoming announcements in the October Budget.
Tips for Buyers:
- Shop Around for Mortgages: With more competitive mortgage products becoming available, it’s wise to compare offers and speak with a mortgage broker. Fixed-rate deals can provide peace of mind, especially with economic uncertainties still lingering.
- Check Your Long-Term Affordability: Ensure your monthly mortgage payments will be manageable, even if your circumstances change. While interest rates are decreasing, affordability checks by lenders remain strict, so plan conservatively.
View our current properties for sale in Newport here.
Selling: Setting Realistic Expectations
The time to sell a property has increased, according to Rightmove, with average homes now taking around 60 days to sell. Buyers are being more deliberate in their choices. This means sellers need to be patient and make sure their properties stand out in a competitive market.
Tips for Sellers:
- Focus on Presentation: Staging your home well can significantly improve its appeal. Invest in minor repairs, fresh paint, and professional staging if possible. First impressions count, and well-presented homes tend to sell faster.
- Price to Market Conditions: Avoid overpricing. Properties that are priced too high can languish, leaving you frustrated. Get an accurate valuation here!
- Be Flexible with Viewings: Make your property accessible for viewings by accommodating various schedules. The easier it is to view your home, the faster you’re likely to attract serious buyers.
For sellers interested in tracking house prices, several sources provide valuable insights:
- Halifax publishes a monthly house price index based on its mortgage data.
- The Office for National Statistics (ONS) uses data from the Land Registry to offer the most accurate measure of house prices, though it has a three-month delay.
- Nationwide and Zoopla also track house prices. Nationwide reported a 0.2% decrease in August but a 2.4% annual increase, with average prices at £265,375. Zoopla's data showed a 0.5% rise in July, with average prices now at £266,400.
Each of these sources uses different methods to track prices, so it’s beneficial to consider them all for a comprehensive overview of the market.
For property in Newport, Freelancer Lets & Sales is best placed to offer information on house prices, tips and advice. Please do call us on 01633 856344 or email enquiries@freelancerlets.com.
Landlords in Wales: Preparing for New Regulations
September 2024 marks a crucial time for Welsh landlords, as changes in legislation continue to reshape the rental market. While Wales is exempt from England’s Renters' Reform Bill, Welsh landlords must still prepare for significant regulatory adjustments, particularly around tenancy laws and energy efficiency standards.
Renting Homes (Wales) Act 2016: What Landlords Need to Know
Wales has its own set of tenancy regulations under the Renting Homes (Wales) Act 2016, which fully came into effect back in December 2022. This law replaced most existing tenancy agreements with standardised contracts and introduced more tenant security.
One of the most important changes is the extension of the notice period for ending a contract from two months to six months. The act also established mandatory written tenancy agreements and increased landlord responsibilities regarding repairs and property safety standards.
Energy Performance Certificate (EPC) Requirements for 2030
Like landlords across the UK, Welsh property owners must begin preparing for the 2030 requirement that all rental properties have an Energy Performance Certificate (EPC) rating of “C” or above. Upgrading properties to meet these standards is essential to future-proofing investments, as non-compliant properties may not be legally rentable from 2030 onwards.
Tips for Landlords:
- Stay Compliant: Keep up to date with the latest regulatory changes. Joining a landlord association or subscribing to property management services can ensure you're informed and compliant.
- Plan for Energy Efficiency: Start making energy-saving upgrades, such as improving insulation or installing energy-efficient heating systems, to meet future EPC requirements. These upgrades could also make your property more attractive to environmentally conscious tenants.
- Focus on Tenant Retention: With longer notice periods now required for ending tenancies, it’s vital to build strong relationships with your tenants. Consider offering small incentives like property improvements or rent freezes to retain reliable tenants.
- Consider Professional Management: The growing complexity of property management in Wales means more landlords are turning to professional services to handle day-to-day operations and compliance.
For landlords seeking assistance with property management in Newport, contact Freelancer Lets & Sales on 01633 856344 or email enquiries@freelancerlets.com.
Tenants: Higher Costs, Stronger Rights
Although Welsh renters face rising rental costs, the Renting Homes (Wales) Act has improved tenant rights and provided greater security. According to Zoopla, average rents in Wales increased by 7.7% over the past year, with the average monthly rent now standing at £867. However, competition for rental properties remains fierce due to high demand and a limited supply of homes.
Key Tips for Renters:
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Know Your Rights: With the introduction of the Renting Homes (Wales) Act, tenants have more legal protection than ever. Make sure you’re familiar with your rights, including the minimum notice periods and your landlord’s obligations for property upkeep.
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Be Prepared: The demand for rental properties remains high, particularly in urban areas like Newport. Having all your documents ready can give you an edge in a competitive market.
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Explore Alternatives: If you're struggling to find a rental in a specific area, consider broadening your search to nearby regions where rents may be more affordable. Flexibility with moving dates could also help secure a property more quickly.
Looking Ahead
Welsh landlords and tenants must navigate a dynamic and challenging rental market as new regulations and economic factors reshape the landscape. For landlords, compliance with the Renting Homes (Wales) Act and future EPC standards will be crucial. Meanwhile, tenants can benefit from stronger legal protections but must be prepared for rising costs and increased competition.
Freelancer Lets & Sales are your local estate agents in Newport. We are delighted to bring you our property market updates each month. If you are thinking of buying, selling or letting a property in Newport, please get in touch.
Call us on 01633 856344 or email enquiries@freelancerlets.com to chat with a member of our friendly and experienced team or request a valuation.