The UK’s PRS diverges with London slumping and other areas soaring

The UK’s PRS diverges with London slumping and other areas soaring

0:02 AM, 19th November 2024, About 2 hours ago

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The UK’s rental market has a stark regional divide, with London experiencing significant declines in rent prices, while Wales and Yorkshire continue to see double-digit growth.

According to the latest data from Home.co.uk, annualised national growth for asking rents is a modest 1.1% – largely dragged down by London’s falling prices.

In contrast, Wales and Yorkshire have seen impressive year-on-year increases of 15.2% and 14.4%, respectively.

Greater London, meanwhile, has witnessed a worsening year-on-year decline of 3.9%.

Significant drop in asking rents

The City of London has seen the most significant drop in asking rents among all London boroughs, with an annualised fall of 15.6%.

While UK asking rent growth is keeping pace with inflation, this national average masks significant regional disparities.

In the sales market, the annualised adjusted average asking price growth across England and Wales is now 2%.

This is a significant improvement from the -1.6% annualised growth recorded in November 2023.

Property market shows signs vitality

Despite a seasonal decline of 0.3% since last month, the property market continues to show signs of renewed vitality.

Property turnover is higher than in most of the past decade, and typical time on the market remains significantly lower than pre-pandemic levels.

The high volume of property moving through the market has led to a significant decrease in unsold stock, even with a substantial uptick in new instructions.

The North West region saw the highest increase in new instructions, up 21%.

While most regions in England and Wales experienced seasonal price dips, Scotland and the North West saw price increases.

London’s house prices, the data shows, remained unchanged.


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