House Prices Up, While Rent Values Slow Down

As the market shifts with the season, it’s wise to know what’s the latest. On LBC News, our own Philippa Jackson, Operations Director at Purplebricks Mortgages, weighed in on the latest market shifts.  

House prices are increasing – up 2.8% in the last 12 months. Jackson said that the contrast is visible in the different regions, with England up 2.7%, Wales up 2%, and Scotland up 3.3%. She said it’s ultimately “good news for homeowners as prices are up year-on-year, with marginal increases month-on-month.” But for tenants, it’s a different story.  

The UK average rent price increased 5.7% in the 12 months to August, down from 5.9% in the 12 months to July. That means the average monthly rent currently sits at £1,340. 

Jackson says that the surprise is in the rent growth. “With slower growth in July and August, it’s the second month of easing after relentless increases for tenants.” This could suggest that tenants are still under strain, but landlords are perhaps hitting the limit of their affordability, and people can’t keep absorbing large rent hikes. 

When asked if this could signal a sustained decrease, Jackson goes on to suggest that it’s difficult to understand whether landlords have reached the top of what they can afford, and if people can move forward to buy houses. Ultimately, it’s hard to say. We’ll have to wait and see. 

LBC News went on to ask about the home-buying process, with sales falling through that cost the economy at least £1.5bn. Jackson said processes need to change with the economy, and it is something the industry needs to examine to support sales. And, of course, here at Purplebricks, we aim to make that process as easy as possible, with support to keep chains moving forward and sales completing.  

Listen to the full interview here. 

For all house price and market updates, keep an eye on our latest news. And, if you’re ready to sell or buy, we can help with that too.