The cost-of-living crisis is likely to be felt for most Britons this year, with increases in energy and food costs and the increase in National Insurance Contributions from April. In addition, renters need to add in the rising cost of renting a property, with the average price for a new tenancy up by 8.5% from last year*.
Average rental values
Recent figures show the average cost of renting in the UK is now £1,064 per calendar month (pcm). Every region has seen an increase in costs, the greatest being in London, where rentals average £1,760pcm, 12.6% higher than January 2021; outside London the average rent is up by 6.9% year-on-year at £897pcm. In Scotland, the average rent is £747 pcm, up 9.4% from a year ago.
Commenting on the latest data, Andy Halstead, HomeLet & Let Alliance Chief Executive Officer, said, “Whilst there’s no doubt that it’s been a challenging year for many landlords, the increase in house prices has only increased the appeal of property investment. We expect to see more focus from the Government on the rental sector in 2022, through legislation like the Renters’ Reform Bill.”
Things are looking up for buyers
Those looking to buy a property this year will be pleased by news that the ongoing imbalance between housing supply and demand may be beginning to ease. According to Rightmove, the number of properties listed in the final week of January 2022 was
up 8% compared with the previous year**.
Tim Bannister, Director of Property Data at Rightmove, commented, “The market has picked up pace after a busy festive period, and it’s really encouraging to see more properties start to come to market for sale. More new listings, coupled with the higher number of requests from prospective sellers to estate agents to value their home, certainly suggests good news and positive signs we are moving towards a better-balanced market in 2022.”
However, he added that continued high demand would see buyers continuing to face
“stiff competition” for available properties – so they “should act fast when a property they
like comes onto the market.”
Banish buyer anxiety
In a competitive market, buying a house can feel overwhelming. In fact, 40% of homeowners in a 2021 report*** said that moving home had made them feel stressed and ill. From getting a mortgage to instructi ng estate agents, solicitors and surveyors, it’s a lot to deal with.
Breaking the process down into manageable steps, and then dealing with each step as an
individual task, can help make the buying process more manageable. For example, when it comes to finding suitable mortgage finance, our expertise could help take the pressure off and get you on the way to your homeownership dreams.
*HomeLet Rental Index, 2022 **Rightmove, 2022 ***Yopa, 2021
As a mortgage is secured against your home or property, it could be repossessed if you do not keep up mortgage repayments