It’s still early days for the new Labour government. But it has made clear that priorities will be given to housing – and affordable housing in particular.
So it’s worth taking a look at current property news headlines for a glimpse of the background facing government policies.
Report: £14.6bn economic contribution of the London private rented sector
When the government looks at the private rented sector it will be informed by a recent study by consultants PwC about the value of that market in London alone, according to the National Residential Landlords Association (NRLA) recently.
The key features of the report – entitled The Economic Contribution of the Private Rented Sector – include the following:
- small and medium-sized landlords – those owning 15 or fewer rental properties – contribute £14.6 billion to the capital’s economy or 2.6% of its total regional Gross Value Added (GVA);
- what is more, the report reveals, the private rented sector in London has created – either directly or indirectly – an estimated 128,000 jobs (in various areas of activity);
- the findings reinforce the importance of the part played by the private rented sector not only for employment but also the encouragement of investment in various regions;
- looking at England and Wales as a whole, the report reveals that the private rented sector contributes an estimated total of £45 billion to the UK’s Gross Value Added (GVA);
- across England and Wales, the private rented sector supports an estimated 390,000 jobs;
- the principal industries to benefit from the economic contribution of the private rented sector include public administration, building maintenance, and construction.
UK housing market hotting up – house prices on track for 2% increase in 2024
Evidence from the regular market analyses conducted by the online listings website Zoopla suggests that the UK housing market is heating up. Its latest report on the 30 of July reveals:
- an anticipated average increase in house prices of 2% by the end of this year;
- an increase in the supply of housing – given by the volume of agreed sales – of 16% compared with 12 months ago;
- that buyers are on average paying 96.8% of the seller’s asking price – circa £16,600 below the asking price – making these the highest bids in the past 18 months;
- government policies are expected to have “no material impact” on the housing market – but a cut in interest rates by the Bank of England could instil greater confidence and activity in the market;
- during the previous 12 months, house prices in the north of England have tended to rise while those in the south have fallen.
Top 10 cheapest and most expensive seaside locations
Has the arrival of summer encouraged you to hunt for a home near the seaside? The online listings website Rightmove on the 1st of August listed the cheapest and the most expensive locations you are likely to find:
Cheapest
- average asking price £114,365 – Saltcoats, Ayrshire;
- £122,520 – Easington, County Durham;
- £124,593 – Peterlee, County Durham;
- £132,660 – Ashington, Northumberland;
- £133,197 – Bootle, Merseyside;
- £135,951 – Grimsby, Lincolnshire;
- £139,547, Girvan, Ayrshire;
- £140,437 – Maryport, Cumbria;
- £141,765 – Workington, Cumbria; and
- £146,674 – Hartlepool, County Durham;
Most expensive
- average asking price £1,582,331 – Sandbanks, Dorset;
- £1,242,181 – Canford Cliffs, Dorset;
- £751,442 – Milford-on-sea, Hampshire;
- £678,058 – Padstow, Cornwall;
- £603,312 – Lymington, Hampshire;
- £562,609 – Barton-on-sea, Hampshire;
- £542,005 – Budleigh Salterton, Devon;
- £521,932 – Lyme Regis, Dorset;
- £501,099 – Sidmouth, Devon; and
- £495,009 – Sandgate, Kent.
First-time buyers spend 40% of pay on mortgages
Citing research by the Nationwide Building Society, the BBC recently revealed that the average first-time buyer currently spends almost 40% of their regular earnings on mortgage repayments.
Nationwide recognises that this is substantially higher than the 30% of earnings that has been the longer-term measure of the ratio of mortgage repayments to earnings. The current rate underlines just how difficult first-time buyers are likely to find their first step on the housing ladder.
Although earnings have risen somewhat, house prices gained 2.1% in the previous 12 months – the fastest increase since December 2022.
