Your Watford & Hertfordshire market report

With so many distractions last month, from football to the elections, it is no surprise that prices in the housing market were down but only slightly. Rightmove reports they fell by 0.4% in June, and Halifax’s index fell by 0.2%. Nationwide’s was up by +0.2%.

Now that the election (and the Euros) is over, any uncertainty over the outcome has been banished, and activity is likely to return to more normal levels quickly. Before the election, buyers had been waiting for the base rate to fall. Prices had been subdued but stable, and that trend looks set to continue.

Matthew Marchant, Director of Sales at Rolstons, said: “Mortgage affordability is still the biggest challenge facing homebuyers and those coming to the end of fixed-term deals. This issue is likely to be eased gradually through a combination of lower interest rates, rising incomes, and more restrained growth in house prices.”

Despite the brief election hiatus, Rightmove is still reporting relatively healthy levels of activity - the number of sales being agreed is 15% above the same period a year ago when mortgage rates were approaching their peak. In addition, the number of new sellers coming to market is 3% above last year. There has, though, been a slight drop (-2%) in demand in the affordability-stretched first-time buyer sector.

The best news, however, is Labour’s pledge in the King’s Speech to tackle the UK’s chronic housing shortage by building 1.5 million homes over the next five years. It’s an ambitious target but one that will be welcomed by most of those in the property industry.

Rental & Buy To Let Market

Rents bucked the election slowdown trend, with the average outside London rising to a new quarterly record of £1,314 per calendar month (pcm)—some 7% higher than last year (£1,231 pcm). Rental growth continues to slow in London, although it still hit a record high of £2,661, 4% higher than last year (£2,567 pcm). However, it is still short of its peak of 16% in 2022 (source: Rightmove).

Labour’s pledge to implement the Conservative’s Rental Reform Bill is the biggest news in the rental market. The changes include:

1. The Abolition of no-fault evictions
2. Tenants to be given the power to challenge rent increases that are designed to force them out
3. Agents and landlords to be prevented from instigating bidding wars;
4. Renters to be given the right to request to be able to keep a pet, but landlords will also get the power to request tenants take out pet damage insurance
5. Decent homes standard to be applied to the PRS
6. Awaab’s law to be extended to cover the Private Rented Sector, which will punish agents or landlords who don’t fix damp and mould problems promptly
7. The Creation of an online database of landlords and their properties

If you'd like to talk to an agent for more personalised advice, our team are always on hand to help. We'd love to hear from you, whether just a quick chat or a no-obligation property valuation.

Warm wishes,

The team at Rolstons