Home market values remain steady over the past year, reports Home.co.uk
Home.co.uk’s Asking Price Index for December indicates that home market values in the UK have largely remained stable over the last year. The index shows a minor annual increase of 0.1% in property values, marking the first positive figure in nine months. Despite a seasonal decrease of 0.7% in November, limited property stock for sale is expected to support prices in the future.
The survey reports a modest monthly supply of new property instructions, with a significant drop in unsold property stock typical of the festive season. The market balance has been maintained with a decrease in supply by 8% compared to November 2018, countering the effects of higher borrowing costs on demand.
Regionally, the Midlands have seen a notable slowdown compared to their performance in 2018, while the North East and Scotland have improved in marketing times. Northern markets continue to show positive year-on-year price growth, matching the rate of inflation.
The rental market, which had previously benefited from strong growth since late 2021, is now experiencing a downturn. Rent growth has slowed in several regions, with UK rents falling across the board, particularly affected by the Greater London region. London’s supply increase earlier this year has led to more competitive asking rents. In the South East, supply has risen by 14% compared to last year.
UK rents peaked in early October this year but have since decreased by 2.3%. The average annualised rent rise across the UK has reduced from 9.7% in October to 6.1% in November, and further down to 5.3% in December. The report suggests that rent growth could turn negative if the trend of increasing supply continues.