The UK property market is in a curious state at present. After high demand and low supply in the owner-occupier segment over the past couple of years drove high levels of price inflation, the market has turned, no longer able to defy gravity as the wider economy slumps into recession.
Various surveys have shown this, with the latest being the Halifax House Price Index for December 2022. It revealed that the annual growth in prices was down to two per cent, having been 4.6 per cent in November. The reason for this was that recent months have seen an absolute fall in prices, even if December’s 1.5 per cent dip was less than November’s 2.4 per cent.
All that means if you are planning to move home, the price you could pay will be less than a few months ago, but if that move involves selling your house, you will command a lower price than in 2022. These things might have balanced each other out in other circumstances, but it should be remembered that recent base rate rises mean mortgage costs are higher than a few months back.
However, there is an alternative, that of contacting letting agents in Cheam to have your existing property rented out. While you move to a new place, you can enjoy a strong rental income.
A key reason for this is the recent surge in rents across the country. Recently published Office for National Statistics Data showed that rents had risen at their fastest rate for seven years in 2022, partly because landlords were passing on higher mortgage costs.
Further data from the latest study by Landlord Insurance firm Homelet, for November 2022, showed that every region of the UK has seen annual growth, although November had seen a miniscule drop of 0.1 per cent across the UK and 0.2 per cent in London.
However, chief executive of Homlet Andy Halstead predicted that “rental prices will likely continue to rise” in 2023. That suggests renting out your home could be a very lucrative option this year.