UK Relocation: 2015 Housing Market Update
Our Cartus UK Market Watch gives an insight into the current trends in the UK sales and rental markets, useful for those involved in UK relocation. The latest issue looks at the differences between London’s rental and sales markets and the rest of the UK’s, as well as new property legislation and the supply-demand imbalance. Here’s a snapshot of our latest UK publication:
UK Relocation: Rental Prices
The average monthly payments for those renting a property in the UK (ex. London) is £762—£33 more than in 2014. Those living in the capital city may pay an average of £1,555 per month; £96 more than last year, and a whopping £793 more than renting a similar property elsewhere in the UK. (HomeLet)
The lack of available housing stock and increased tenant population are the main factors for rising rental rates year on year. The good news is that 2015 has seen an annual growth in the number of buy-to-let lending when compared to home-owner mortgage loans. Experts hope that this will help to ease the current supply-demand imbalance.
The not-so-good news is that the growth in buy-to-let lending may be down to the dramatic fall it had during the economic crisis. Indeed, Council for Mortgage Levels estimates that between 2007 and 2009, mortgage loans given to prospective landlords went down by as much as 71%.
UK Relocation: House Prices
London continues to outpace the rest of the UK in the residential sales market too. The average price of a home in the city is valued at £443,399, which is more than double the UK average and more than three and a half times that of a typical property in the cheapest region, the North of England. (Nationwide)
When looking at the North-South divide, the difference in average house prices exceeded £150,000 for the first time recently. And average property values in the South are now twice as high as comparable properties in the North. (Nationwide)
Comparing all the UK’s major cities, Cambridge saw the highest annual price growth with 11.2%. Aberdeen in Scotland recorded the lowest growth, with a 2% decline. Interestingly, some individual cities appear to be bucking their region’s annual growth trends. For example, despite Scotland recording an annual decline of -1.3%, Edinburgh and Glasgow reported a 9% and 5.3% price increase, respectively. (Hometrack)
For a more detailed review of the UK sales and rental markets, and how it may impact corporate relocation, read the Cartus UK Market Watch and view our Resource Page for information on other major locations worldwide.