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  • Writer's pictureAnna Clare Harper

Anna comments on the latest house and rental price data


Anna Clare Harper Quote

Double whammy of data today on house prices and rental prices.


Firstly, and from a social perspective most importantly: average private rental prices paid by tenants in the UK officially rose by 6.2% in the year to November 2023. 


This statistic under-estimates the reality many renters face, in particular the 1 in 4 who move each year, as rental price increases for new tenancies are often at least double this figure.


The only way to tackle the problems a whole generation, ‘Generation Rent’ are facing is to invest in our Private Rental Sector. 


It is critical that the volume and quality of supply of rental homes improves, which requires professional investors to step in as traditional sideline private landlords exit in droves.


Secondly, and perhaps most significant economically, house prices fell -1.2% (nominally) to £287,782 in the year to October. 


This trend was led by London, where prices fell by -3.6%, partly because house prices in London started from a less affordable level for local people. 


Whilst house prices arouse great emotions, they are ultimately a simple, scientific reflection of supply and demand. 


A 1.2% nominal house price fall (which of course reflects a much higher real fall) reflects the calming impact on demand of higher interest rates. 


The result for investors not reliant on bank finance is that there are plenty of opportunities to buy at attractive prices as competition is much reduced.


Full articles linked below.





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