House price pressures continue to weigh on buyers
The affordability analysis, outlined by Nationwide, highlights the ongoing struggle of buyers, with house prices remaining high about earnings, despite modest adjustments in some areas. Propertymark’s findings align with this trend, reporting that the average UK house price stood at £290,000 in November 2024, nearly eight times the average annual gross earnings.
With the Bank of England’s base rate holding steady at 4.75%, mortgage affordability remains a significant hurdle for many, especially first-time buyers, who now face higher monthly repayments than in previous years.
Housing Insight Reports
Our Housing Insight Report takes a monthly look at the trends affecting the UK housing market. We gather the statistics by surveying estate and letting agents who are members of NAEA Propertymark and ARLA Propertymark.
Rental costs surge amid supply shortages
Affordability issues aren’t limited to homeowners—renters also feel the strain. Our latest figures show the average UK rent has risen by 9% compared to the previous year, with England’s average rent reaching £1,396. Despite these increasing costs, rental arrears showed a welcome decline, suggesting tenants prioritise rent payments even as their budgets are stretched.
However, the fundamental issue persists; demand continues to outstrip supply. On average, Propertymark members report seven applicants for every available rental property. In some areas, rents have begun to drop as tenants reach their financial limits. While this provides temporary relief for some, the larger issue of limited housing supply means that the long-term affordability challenges remain.
The road ahead
Concerns around housing affordability continue to dominate discussions within the sector. While Nationwide’s report provides a high-level overview, Propertymark’s monthly member insight analysis offers a more granular, real-time view of market trends, buyer and tenant behaviours, and the potential impacts of upcoming legislative changes.
For agents and industry professionals, this detailed insight is crucial for navigating the complexities of the current housing market and preparing for challenges.
