Latest: June property market report

Another month and another major set of announcements to report. Once again, all eyes were drawn to Westminster, where Sir Keir Starmer resigned. For the property industry, one of his final announcements as Prime Minister was a seismic one.

In June, the Government confirmed a commitment to reforming how homes are bought and sold in England and Wales. The large-scale changes will draw inspiration from other parts of the world, including Scotland. It’s hoped around four weeks can be shaved off the buying process, with first-timer buyers saving an average of £650.

A reinvention of HIPs

A new sales pack, not dissimilar to the short-lived Home Information Packs, will be required at the point of listing a property for sale. This will contain the type of detailed information that’s currently obtained by a conveyancer only after an offer has been accepted. The pack will include deed documents, verified seller ID, building safety information, standard search results and a property condition assessment.

Buyers locked in earlier

Early binding agreements will be introduced to stop purchasers breaking chains. They are already in place in Scotland, where they have already drastically reduced transaction fall-throughs. English and Welsh buyers who abandon a purchase without an exceptional reason will face a financial penalty. 

Proposed changes will start as early as this year, with a Code of Practice setting out minimum standards for agents. This will be joined by guidance on improving the quality of information contained in property listings. More involved changes will take time.

Next year will see a consultation on whether agents must hold a minimum qualification to practice. There will also be an expansion of digital tools in the home moving process. The aim is for sales packs to be phased in by 9th July 2029.

We must caveat the above with the change of leadership. The industry hopes the new Prime Minister will stick to the roadmap. There’s also speculation that a new leader will explore plans to scrap stamp duty and council tax in favour of a new land tax – something we will report on if confirmed.

So, we have an idea of what the future of property might look like but how about the present? Rightmove blamed early summer heat and a record number of homes for sale at this time of year for why the average asking price dipped. Sellers in June listed for an average of £376,191 – -0.6% less than in May.

House prices almost stable

Zoopla’s latest report used sold house prices to determine the average UK house price. This now rests at £271,900 – a +0.1% month-on-month increase, with an annual rise of +1.5%. The portal’s analysis gave deeper insights into the UK’s mid-summer market.

The cost of semi-detached houses is rising the most out of all property types, increasing +2.5% over the past year. The region with the strongest house price growth is the North East – up +3.6% in 12 months. Edinburgh topped the list for annual house price growth in cities, rising +2.1% to an average of £281,700.

Head North for value

The top five cheapest cities to purchase in are all in the north of England or Scotland. The cheapest is Hull, with an average house price of £116,400. The other four spots are taken by Sunderland, Aberdeen, Dundee and Grimsby. Despite annual house price increases of +3.4%, the North East is the cheapest region in which to buy, with a £151,000 price average.

Zoopla’s June Rental Index showed the UK’s average rent is now £1,321 - a +2.1% annual increase. This average, however, masks a stark price divide. Rents are rising nearly 5% in areas with average monthly rents below £750. Where average monthly rents are above £1,250, rent increases are 2.1% or less.

If you would like to know more about your local property market, please get in touch.