Fewer potential tenants are registering with lettings agencies. 

At least, that’s the experience of estate agency Hamptons who say they definitely saw the market weakening last month. Agents point to a 17% drop in the number of potential tenants coming to them. At the same time, 1.5 times as many would-be tenants as first-time buyers are registering – compared to 3 times as many two years ago when mortgage costs peaked.

“Lower mortgage rates are changing the arithmetic for tenants who are thinking about buying,” said Aneisha Beveridge of Hamptons. “Landlords rolling off short-term fixed-rate mortgages are now seeing their monthly payments fall, reducing the need to pass on further costs to tenants…This has boosted first-time buyer numbers and reduced demand in the rental sector.”

Renters’ Rights Bill expected to pass in Summer

It’s not all doom and gloom for landlords though. That’s because the introduction of the Renters’ Rights Bill, which is expected to pass this summer, will encourage more people to rent. That’s because it will abolish section 21 evictions and make it more likely for renters to have a pet in their rented property.

The number of potential renters is also far higher than properties available, meaning rents are expected to continue to rise higher than inflation. Figures from the ONS showed a jump in the UK monthly private rent rate of 7% over the past three months to May, for instance. That brought the average UK rent to £1,339.

Sellers having a tougher time of it

Meanwhile, sellers are having to drop asking prices as the number of properties for sale increases. Rightmove has seen a jump of 11% more properties coming to market than at the same time last year, while buyer demand has only increased by 3%.

Locations where asking prices fell most this month were in London (by 1%), the south-west (1.6%) and the south-east (0.9%). Fittingly, these were also the areas where properties for sale increased most.

Property prices in London have doubled over the past two decades, according to a report by Zoopla.

At the same time the average property in the UK (outside London) has jumped by 74%. The property portal made its findings by checking the price of properties advertised on its website in 2005 compared to this year. 

An increase of more than £155,000 over 20 years

The data shows that the average property has risen from £113,900 to £268,200 within that time. 

Breaking down the figures further, property in the South East and East of England rose by 87%, while those in the North East of England only increased by 39%.

Property in Scotland rose by 63% over the same period and it was a similar story in Wales, with an increase of 64%. That led to average property prices of £168,000 and £206,500 respectively.

Many working people can’t afford to return home

Zoopla’s consumer expert Daniel Copley said: “Our latest analysis certainly brings to light the profound impact that two decades of house price growth has had on the dream of ‘returning home’.

 “…that nostalgic return [is] financially unattainable for many, especially in hotspots in the South East and Eastern England.

Funding to build more affordable housing

Meanwhile, the government reveals it is short of around 4.3m homes, if it is to meet need. The biggest shortages of homes are in cities, where it is more expensive to build because land is often sold at a premium.

In her recent budget, chancellor Rachel Reeves gave £39bn to housebuilders to build more affordable housing over the next decade. At the same time, she removed much of the red tape that has held building back in recent years. 

Although it is going to take time for the funding to come through and the houses themselves to be built, many in the industry are confident it will make a difference to the current housing crisis.

Former RICS chairman Jeremy Leaf said the steps taken by the chancellor so far merited a 7 out of 10 rating.

Property prices fell in May, by a steeper margin than many in the industry had predicted. 

A drop was expected after the April rush to beat the Stamp Duty deadline, but it wasn’t as much as a monthly 0.4%. That bigger decline brought the average property price in the UK to £296,648, which was a fall of around £1,150.

Annual growth falls to 2.5%

At the same time the year-on-year figure fell to 2.5% growth, according to the latest Halifax House Price Index figures. Growth the previous month was 3.2%. The latest figures show property has increased by around £7,000 over the past year.

Analysts point to economic uncertainty and ongoing financial pressures on households for the slowdown (including the increase in private school fees). The drop in activity was also seen in mortgage approval figures, which the Bank of England said, fell by 3,100, bringing the total number of residential mortgage approvals to 61,500.

Property market ‘remains resilient’ says Halifax

Halifax’s head of mortgages, Amanda Bryden said: “These small monthly movements point to a housing market that has remained largely stable, with average prices down by just -0.2% since the start of the year.” 

She added: “Despite ongoing pressure on household finances and a still-uncertain economic backdrop, the housing market has shown resilience – a story we expect to continue in the months ahead.”

Breaking down the figures in to regional differences, Northern Ireland, Scotland and Wales all saw a rise in house prices – Northern Ireland by 8.6%, and Scotland and Wales by 4.8%. The average property in Northern Ireland now sits at £209,388. In Scotland it’s £214,864 and in Wales £230,405. The average property in London costs £542,017, after prices in the Capital grew 1.2% annually.

Demand for housing in the UK remains huge, of course, with the government pledging to build 1.5 million new residential dwellings by 2009.

Private landlords in the UK benefitted from an additional 7.4% in monthly rental income this year. That’s the findings from the government’s Office of National Statistics, which records the average UK monthly private rent at £1,335. The increase, of 7.4% was a fall from the previous year, which saw rents increase by 7.7% between April 2023 and April 2024.

It means the typical monthly rental in England now costs £1,390. In Wales it’s £999 and in Scotland, £795.

When it comes to geographical location, the biggest increase in private rents was in the North East (a jump of 9.4%), the lowest was in Yorkshire and The Humber at 4%.

Property prices rise by over 6%

But it wasn’t just rental income that saw a rise in the government’s latest statistics. Homeowners also saw the value of their property go up. That’s because the typical UK house rose in value by 6.4% to £271,000, in the 12 months to March 2025. The rise was highest in England, at 6.7%, bringing the average property there to around £296,000. In Wales, the value of property rose by 3.6% to £208,000 and in Scotland, house prices jumped 4.6% to £186,000.

But it’s not all plain sailing for the property market, according to analysts. They point to a jump in inflation to 3.5% in April, which could have a detrimental effect to people’s finances and hit the property market hard. That’s because it means mortgage rates won’t fall as earlier predicted, but will remain so until inflation is under control.

Former RICS boss warns of a slowdown in property market

Former RICS chairman Jeremy Leaf said: “At first glance, the ONS figures demonstrate market resilience with activity shrugging off recent economic uncertainties at home and abroad. However, on the ground we are seeing a different story.”

That story is that buyers and sellers are holding off to see what the economy will do over the next few months, meaning the property market is expected to slow down over summer. 

The ‘Trump effect’ isn’t just helping ‘leftish’ politicians get elected in the west, it seems. 

Figures revealed this week from Rightmove show a desire by Americans to flee the Republican’s high tariffs and other ‘draconian’ measures is also affecting the UK property market.

The popular property portal has seen a 20% increase in American interest for UK property since Trump was elected. It’s the highest increase in eight years.

Edinburgh proves most popular for US property buyers

The majority of Americans are looking to buy in Scotland, and the capital city Edinburgh, in particular. Second in popularity is Westminster in London, with Camden third. Scotland’s biggest city in terms of population – Glasgow – is also proving popular, coming in fourth most appealing for US buyers.

The desire for relocation to Scotland may be down to the lower prices (the average property is around £100,000 cheaper north of the border than in the South) or a desire to ‘live where our forebears once did.’

A spokesman for Rightmove says their statistics show that just over one third of American who enquire about property in the UK are looking to relocate to the UK. That’s because they are looking at three or four-bedroom homes. Around 47% of enquiries are for one or two-bedroom properties, which are more suitable for second homes.

“President Trump’s tariff announcements have led to more economic uncertainty globally, and we’re starting to see some of the effects of this on the UK property market,” said Rightmove’s Colleen Babcock.

“Whether it’s because the UK is seen as a more stable investment opportunity, or whether some buyers are considering a permanent move across the Atlantic, we’re seeing an increase in enquiries from the US.”

But the UK isn’t proving popular with billionaires. The Times super-rich list recently reported the biggest fall in billionaires yet – a drop from 165 to 156 over the past 12 months. Last month the Labour party abolished the non-dom tax status for property owners whose permanent home wasn’t in the UK. 

As predicted, the value of UK property fell last month.

The reason was the highly inflated figure for March after would-be buyers rushed to make the most of the Stamp Duty discounts in England and Northern Ireland.

The Nationwide put the average property at £270,752 for April. That was a drop of 0.6% on March’s figure. It brought the year-on-year price increase down from 3.9% in March to 3.4% for April. 

Possibility of more Bank of England base rate cuts 

That hasn’t put analysts off predicting a busy summer though, especially with the possibility of several Bank of England base rate falls this year. The 0.25 drop yesterday, bringing the current figure to 4.25%, is certainly encouraging. That’s because the likelihood is that it bring down mortgage interest rates, ensuring property is more affordable for a larger part of the population.

And, even though the economic situation looks uncertain in America, inflation in the UK dropped to 2.6% in March. The employment situation is stable and wages are rising, putting more money in people’s pockets.

Confidence in property market growing says Rightmove

Rightmove figures, published today, certainly seem to indicate a flourishing property market. New listings on the portal had increased by 9% compared to the same time the previous year. Sales, too, were up, this time by 7%. In fact, listings have been at a 10-year high since April this year. 

When there’s help from the Bank of Mum and Dad

Meanwhile, a report by UK Finance revealed first time buyers who got help from family managed to put down deposits of around £225,000. Those who were ‘unassisted’ put down a lower amount of around £150,000. 

First time buyers who were helped by family tended to buy at around age 30 and had a household income of approximately £56,000. This compared to age 32, with a household income of £65,000 for the other group.

Private rental properties lying empty for more than six months could be taken over by the local authority. 

At least, that could be the case in one London borough where council official have asked for a fast-track Empty Dwelling Management Order (EDMO). 

Under the current Housing Act legislation, which was introduced in 2004, councils are permitted to apply for possession of an empty private rental property after a period of two years. 

Westminster Council targets wealthy overseas investors

But Westminster Council, which states it has more than 1500 private rental properties lying empty, says that timeframe is too long and is urging the government to update their policy. The majority of empty homes in the district belong to wealthy overseas buyers. 

The government, for its part, is keen to support local authorities looking to free up empty properties for rent. As the law currently sits, councils who want to repossess a property can apply to a Residential Property Tribunal after it has been vacant for at least two years. 

New Build Homes figures ‘up’ on previous year

Meanwhile, the government’s aim to build new homes to help local authority housing supplies, is ploughing ahead. Around 31,770 properties were completed between October and December 2024. 

That was up 32% on the same time the previous year. It was, however, lower than the previous quarter (July to September) when 14% more (37,070) homes were delivered. The pledge of the current Labour government is to build 1.5m homes by 2030.

To achieve this, Housing secretary Angela Raynor intends to scrap a number of statutory consultations for large developments. This means new road, rail, energy and other infrastructure projects, could be completed quicker. 

Referring to the Planning and Infrastructure Bill, which is currently under consideration by Parliament, the deputy prime minister said: “Critical national infrastructure is key to Britain’s future and security – so we can’t afford to have projects held up by tiresome requirements and uncertainty, caused by a system that is not working for communities or developers and holding back our true potential.” 

Annual private rents in the UK rose by 7.7% in March.

That’s according to data from the government’s Price Index of Private Rents (PIPR). It’s a drop of 0.4% from February, with the biggest rise in rental inflation in the North East at 9.4%. It’s the first time in two years that the highest rental inflation rise wasn’t in London, which saw a 9.1% jump. Landlords in Yorkshire and The Humber saw the lowest annual rental inflation, at 4.6%.

England has highest private rental inflation

Country-wide, average rents rose by 7.8% to £1,386 in England (an increase of £101 compared to a year earlier). The jump was 8.9% in Wales to £792 and 5.7% in Scotland to £1,001. Figures to January 2025 saw rents in Northern Ireland increase by 8.2% to £838. 

In terms of individual local authorities, the highest average rent in the UK was in London’s Kensington and Chelsea where tenants were paying around £3,639. The lowest rent was in Dumfries in Galloway in Scotland, at £528. The highest average rent outside the capital was in Elmbridge in the South East, with a cost of £1,893.

Cost of average property up more than 5%

The cost of the average UK property came in at £268,000. This was an increase of 5.4% and an annual monthly jump of 0.6%. In England the average property is now priced at £292,000, This compares to £207,000 in Wales and £186,000 in Scotland.

Property being ‘snapped up’ in 19 days

Meanwhile, the end of the Stamp Duty holiday hasn’t put paid to the British public’s appetite for moving home if Zoopla’s latest report is anything to go by. 

The portal points out that in Waltham Forest in North East London, properties are selling within 19 days of being on the market. And the UK average isn’t bad either – with most properties selling within around 36 days. Property in some of the larger cities, such as Manchester, Gateshead, and Carlisle are also selling fast – mostly within 32 days.