Is now a good time to buy?
Looking at the latest UK house price data from the HM Land Registry, annual house price inflation from July 2022 to July 2023 was 0.6%, down from 1.9% in June 2023 – making this look increasingly like a buyer’s market. In England, the average house prices in July 2023 were £309,000 (a yearly increase of 0.6%), Scotland's house prices were £192,000 (+0.1% year-on-year) and Wales saw a yearly house price slow down of -0.1%, reaching £216,000.*
Interest rates will most likely be part of the deciding factor in whether or when you buy. At the time of writing, rates are currently between 5-7%, varying depending on the provider and the amount you apply for.**
Thinking about buying in Scotland?
Although the Scottish housing market operates slightly differently to English and Welsh markets, house price growth has also slowed somewhat, though not as significantly as in England. The Land Registry reported that in the 12 months to July 2023, there has been little change, 0.1% to be precise, with average house prices reaching £192,000. Simply looking at these numbers, like England and Wales, it paints an encouraging picture for anyone looking to buy.
So, if you’re thinking about buying, take advantage of the current market, as it offers you a great opportunity to either get on the property ladder, upsize or downsize.
Is investing in property still a good idea?
Landlords, in particular, may be asking themselves this question in relation to their buy-to-let properties and if rental properties are still a good idea. So to help answer this, we’ll first run through some key facts you need to know about.
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.