{"id":7767,"date":"2022-08-24T10:44:28","date_gmt":"2022-08-24T09:44:28","guid":{"rendered":"https:\/\/new.contentdeployment.co.uk\/tomd\/2022\/08\/24\/residential-property-review-august-2022\/"},"modified":"2022-08-24T10:53:22","modified_gmt":"2022-08-24T09:53:22","slug":"residential-property-review-august-2022","status":"publish","type":"post","link":"https:\/\/new.contentdeployment.co.uk\/tomd\/2022\/08\/24\/residential-property-review-august-2022\/","title":{"rendered":"Residential Property Review \u2013 August 2022"},"content":{"rendered":"
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Slowing market as demand dips again<\/strong><\/p>\n<\/div>\n\n

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The UK residential market continues to slow at a steady\npace, the latest Royal Institution of Chartered Surveyors (RICS) Residential\nSurvey and Savills\u2019 Housing Market Update both indicate, as demand wanes and\nsupply remains low.<\/strong><\/p>\n<\/div>\n\n

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New buyer enquiries fell for a third consecutive month in\nJuly, the RICS report showed, with a headline rate of -25%. This is comparable\nto June\u2019s reading (-27%) and means the market has now endured the longest\nstretch of falling demand since the early pandemic days. New instructions,\nmeanwhile, remain stagnant, with a net balance of -5%.<\/p>\n<\/div>\n\n

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The Savills report paints a similarly slowing picture; total\ntransactions recorded by HM Revenue and Customs were 96,000 for June, 13% lower\nthan the pre-pandemic average for the month. Mortgage approvals were also\nslightly below average, according to the Bank of England.<\/p>\n<\/div>\n\n

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One key trend noted by Savills is the increased\nrepresentation of first-time buyers (FTBs) in the mortgage market. Almost\n31,000 new loans were granted to FTBs in May, according to UK Finance, while\nnew mortgages for home movers fell by 22%.<\/p>\n<\/div>\n\n

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Crash unlikely despite pressures<\/strong><\/p>\n<\/div>\n\n

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A housing crash in 2022 remains unlikely, according to\nZoopla, even as house prices come under increased pressure from rising interest\nrates and living costs.<\/strong><\/p>\n<\/div>\n\n

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Despite the pandemic boom, house prices are not as\novervalued as they were in previous economic cycles, analysts say. For example,\nZoopla\u2019s Richard Donnell points to the tougher rules for getting a mortgage,\nwhich \u201cputs the market in a much better position to weather high mortgage\nrates and the increased cost of living\u201d <\/em>than in previous downturns.<\/p>\n<\/div>\n\n

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Furthermore, shifting post-pandemic work patterns can help\nsustain demand, analysts add. A fifth of people are more likely to move since\nthe pandemic, a Zoopla survey found, while more than half of those expecting to\nspend more time working from home feel compelled to move. With two-fifths of\nworkers now planning to work mostly from home, according to the Office for\nNational Statistics, that is a sizeable market of potential movers.<\/p>\n<\/div>\n\n

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Landlords rue new EPC rules<\/strong><\/p>\n<\/div>\n\n

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One in five landlords could sell up or stop renting their\nproperties, according to research from Paragon Bank, in response to proposed\nchanges to Energy Performance Certificates (EPCs).<\/strong><\/p>\n<\/div>\n\n

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From 2025, all newly rented properties will be required to\nhave an EPC rating of C or above, more stringent than the current requirement of\nE or higher. Recently, Paragon estimated the average cost of upgrading a rented\nproperty to a C rating at \u00a310,560.<\/p>\n<\/div>\n\n

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Existing tenancies will have until 2028 to comply with the\nchange, after which millions of properties could risk becoming unrentable if\nlandlords don\u2019t make necessary changes. <\/p>\n<\/div>\n\n

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In the face of these new rules, sustainability is becoming a\nmajor selling point, according to Rightmove\u2019s Green Homes Report. The report\nfound that the time it takes to sell a property is faster for homes with the\nhighest EPC ratings.<\/p>\n<\/div>\n\n

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All\ndetails are correct at the time of writing (17 August 2022)<\/strong><\/p>\n<\/div>\n\n

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It is important to take professional advice before making any\ndecision relating to your personal finances. Information within this document\nis based on our current understanding and can be subject to change without\nnotice and the accuracy and completeness of the information cannot be\nguaranteed. It does not provide individual tailored investment advice and is\nfor guidance only. Some rules may vary in different parts of the UK. We cannot\nassume legal liability for any errors or omissions it might contain. Levels and\nbases of, and reliefs from, taxation are those currently applying or proposed\nand are subject to change; their value depends on the individual circumstances\nof the investor. No part of this document may be reproduced in any manner\nwithout prior permission.<\/em><\/strong><\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"

Slowing market as demand dips again The UK residential market continues to slow at a steady pace, the latest Royal Institution of Chartered Surveyors (RICS) Residential Survey and Savills\u2019 Housing Market Update both indicate, as demand wanes and supply remains low. New buyer enquiries fell for a third consecutive month in July, the RICS report […]<\/p>\n","protected":false},"author":12,"featured_media":7780,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[32,37],"tags":[],"hd_content_source":[116],"_links":{"self":[{"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/posts\/7767"}],"collection":[{"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/users\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/comments?post=7767"}],"version-history":[{"count":1,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/posts\/7767\/revisions"}],"predecessor-version":[{"id":7813,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/posts\/7767\/revisions\/7813"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/media\/7780"}],"wp:attachment":[{"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/media?parent=7767"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/categories?post=7767"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/tags?post=7767"},{"taxonomy":"hd_content_source","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/hd_content_source?post=7767"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}