Another month, another set of figures swinging from one end to the other. Welcome to the world of real estate. Let’s take a look at the property market, as it stands, in June.
Cost of renting increases
This should come as no surprise, and feels like we’re a broken record, but once again, the cost of rental property has increased across the UK – not just London!
The average rent for a one-bedroom property has risen to £746 per month, which is around 48% of the average person’s wages. In London, people can expect to pay 57% of their wages, with the average rent for the same style property at £1,133.
Good news for landlords of course.
Lack of housing
More broken records coming. As you would expect, driving the increased cost of renting, is a lack of new housing in the UK. And figures coming out now, looking at May this year, showed UK property supply down by 5%.
The north of England is being hit worst, where the lack of property (accounting for 47%) is seeing the biggest drop. But while London isn’t faring any better (in general), some boroughs are doing okay – for example, Merton saw supply increase 30% in May.
House prices increase
This all points towards higher house prices. Yes, despite the EU referendum looming over the property market, house prices are still managing to be on the up, with a 8.2% rise in the past year, across the UK, with a rise of 14.5% in London.
Unfortunately, the north of England continues to be hit worst, with the north east seeing only a 0.1% increase in prices – hardly comparable to the UK-wide figures. So, depending on how it may affect your commute, you’re likely to get a house for less than the average £209,054 if you head up north.