How to make the most from the current housing market

How much could you let your property for?

To understand how to make the most of the housing market, we take a deeper dive into what's currently happening.

Investors and landlords may be mostly interested in whether investing in the property and rental market is still worth it, and if you consider the long-term growth in property values experienced in recent years, the data, as discussed below, looks promising. The property market may seem like an uncertain place right now, we’re here to give you the facts and tell you what’s what.

What’s happening in the property market right now?

Following the usual seasonal fluctuations, September has given asking prices a little boost and a flurry of activity, as the UK’s average asking price increased by 0.4% (£366,281) and the number of new properties coming on the market increased by 12%.*** First-time buyers continue to be one of the best performing sectors with the most sales agreed, but still 13% lower than the more normal 2019 market. This increased activity is also reflected in the Halifax house price index for September, that reported average house prices fell by less this month (-0.4%) than in August (-1.8%).***

At a more local level, you'll find relatively consistent trends in monthly asking price changes across most regions. The South West saw the greatest monthly change with a +1.7% (reaching £390,688), while the North East saw the largest monthly decrease of -0.8%, meaning average asking prices for September are £184,568.*** Wales experienced a 1.1% monthly growth in asking price, and a 0.1% increase in annual asking price, meaning that the average Welsh asking price is £259,898. In Scotland, monthly asking prices decreased slightly by -0.1%, but saw a 2.6% increase in average annual asking price, reaching £190,176.***

Why investing in property is still a good idea

Across the UK, average rents are still increasing, reaching £1,276 pcm, and when excluding London, average rents currently are £1,061 pcm. This means that rents are up by 10.09% and 9.27%, respectively, compared to the same time last year.***

Looking at the various regions, you won't be surprised to find that London remains to be the most expensive area to rent, with an average of £2,179 pcm. The North East is the cheapest with £668 pcm, but having experienced a 1.98% year-on-year price growth.*** Scotland has seen the first decrease in rental growth this year since January (-0.81%), after continuously experiencing record growth for new lets. However, average rents in Scotland now still 13.3% higher than the same time last year, reaching an average of £977.*** Wales has seen a year-on-year growth of 7.3%, a monthly increase of 1.2%, meaning that average rents are now £852.***

Additionally, the latest Zoopla Rental Market Report stated that the current annual rental inflation for new lets lies at 10.5%, with Scotland leading the way with the strongest rental growth of 12.7%.^ The current high demand (51% higher than the 5-year average) and low supply of rental stock (30% lower than the 5-year average) places much upward pressure on rents – a trend that is present across all UK regions.^

Although affordability may dampen some of the rental growth, it should not deter investors and landlords from investing in the rental market. Especially, as in August, Paragon Bank reported that 91% of outer-London landlords, and that 67% of landlords across Britain, have reported an increase in demand.† This further supports the fact that demand for rental properties is high, with little to no signs of slowing down.

Whether you’re thinking of investing in Scotland, Wales or England, we can help you on your investment journey. Why not check out our other blogs to discover rental hotspots near you? Browse articles.

What could you let your property for?

*** Rightmove HPI ; Halifax HPI [08+09] ; Homelet [09]
^Zoopla Quarterly Rental Market Report, September 2023