Landlords Told Sell Now As Capital Appreciation Is Slowing Down
Landlords are warned that if they are thinking of selling up then they should do so now.
Although capital appreciation is still strong a property website says that its latest house price index shows the lowest rate of monthly growth since nearly two and half years ago in December 2019.
In the South Wes, the property market is ‘booming’ as a residential property is only taking an average of 19 days from being listed to acceptance of an offer. Bristol, South Gloucestershire, Plymouth, Swindon and Exeter are also doing well in listing and timescale acceptance because of more choice in housing stock availability up for sale in these areas.
The capital’s residential property’s sales process is the slowest in the UK taking on average 35 days from being advertised to an agreement being reached compared to 22 days across the nation, which is still far quicker than May’s five year average of 50 days.
In spite of house price growth disparity between Wales – 11.4 per cent and London – 3.9 per cent, it does however equate to being comparable increases in monetary terms, however it does highlight major price differentials across areas throughout the UK.
Average house values in Wales have risen by £32,000 over the last two years taking prices to an average of £192,500, whereas in London it is just £30,000 in the same period but with an average house price of £516,100.
Nottingham, out of the largest UK cities, has the highest price growth at 10.4 per cent and Bournemouth is not far behind with 10.2 per cent.
Grainne Gilmore, head of research at the property website, says: “Buyer demand is still strong in the housing market, but signals are emerging that the impetus may be easing, so those who want to make a move should investigate their options sooner rather than later.
“In addition, mortgage rates are likely to continue to climb, so locking into a rate shortly could save hundreds over the longer-term.
“There are many factors supporting the price growth seen since the start of the pandemic, not least the continued imbalance between demand and supply, but the increasing cost of living, increasing mortgage rates for buyers and cloudier economic outlook will act as a brake on house price growth through the rest of the year.”