Rental market joins sales enjoying upward momentum

Another housing market snapshot suggests demand and confidence are improving as a result of the new political and economic landscape following the General Election.

The website Home reveals that its latest analysis shows prices are up in almost all regions and the market is gaining momentum. 

“The year-on-year figures show that market conditions are improving over and above expectations” says Home. 

It says ultra-low stock levels remain a key driver in both the sales and rental markets, with the total stock of property for sale in England and Wales now down 10 per cent year-on-year. 

London is still the area with most supply issues, with 21 per cent less property on the market than a year ago. 

“Overwhelming demand for the few rental properties available is inflating rents across much of Greater London - 29 of 34 boroughs showing increases above 2.5 per cent - and our analysis shows that rent hikes continue to spill over into the South East (now up 10.0 per cent year-on-year)” says the site.

Home expects this rental trend to continue throughout 2020 and house prices to follow in their wake as yields improve rapidly.

Annualised mix-adjusted average price growth in the sales market across England and Wales currently stands at 0.9 per cent, the site says - a year ago, the annual inflation rate showed a drop of 0.2 per cent.

Home’s index is based on asking prices and results are calculated using around 500,000 property house prices found on its website; this figure represents the majority of homes on sale on the open market.