Expected house price falls in 2024

Assets Accounting Property Newsletter

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The Halifax House Price Index for September 2023 found that average house prices for the month were 4.7% lower than prices for the same month in 2022. Commenting on the results of the survey, Kim Kinnaird, Director of Halifax Mortgages said “Against this backdrop, homeowners inevitably become more realistic about their target selling price, reflecting what has increasingly become a buyer’s market.” It is expected that high mortgage rates will continue to put downward pressure on house prices as we move into 2024.

The Nationwide House Price Index found that house price decline for the year to September 2023 was 5.3%. Robert Gardner, Nationwide's chief economist, commented: "There are signs that more buyers are looking towards smaller, less expensive properties, with transaction volumes for flats holding up better than other property types.

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Britain’s best locations for student landlords

Analysis by Paragon Bank has found that yields achieved by landlords letting to students have steadily increased from an average of 5.63% recorded in September 2020 to 6.66% in August 2023.

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The best returns are found to be in smaller university towns and cities: Stoke-on-Trent showed the highest yields for student accommodation with an average annual rent to property value yield of 9.42%. In Wales, Swansea showed the best yield of 9.22%, whilst Glasgow showed the best yield in Scotland with 8.08%.

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The report cites lower house prices and less bespoke student accommodation as reasons for higher yields, in spite of these locations attracting lower student populations.

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Charities concerns over delays to Renters Reform Bill

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The Renters Reform Bill was introduced to Parliament in May but its second reading has been delayed. A group of 30 charities and not-for-profit organisations has written to the Prime Minister urging him to pass the bill.

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There are concerns the bill will not have time to pass through Parliament before the next general election, with the charities warning that delays would risk causing "more avoidable hardship and suffering" and a "greater cost to the taxpayer".

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This is because the bill proposes an end to “no-fault” evictions. Under current housing legislation, known as Section 21, landlords can evict tenants without giving a reason. After receiving a Section 21 notice, tenants have just two months before their landlord can apply for a court order to evict them.

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Landlords who need to sell the property or use it to house close family members will be enabled to recover their property. Similarly, measures will allow landlords to recover their property if tenants wilfully avoid paying rent, breach their tenancy agreement, or cause damage to the property.

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The bill will also strengthen landlord powers to evict tenants who act anti-socially. The list of anti-social activities for eviction purposes will be broadened.

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The Government has said that the bill will resume progress in Parliament shortly.