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Home Price Growth Slows, Stock Level Trends up and Rents Skyrocket

The July 2022 Asking Price Index by home.co.uk has revealed that the UK property market shows no sign of slowing down. Stock for sale is steadily trending up, albeit from a record low set in January this year, and monthly supply of new instructions remains relatively tight.

Meanwhile, demand remains very strong as evidenced by a near all-time low in the Typical Time on Market of unsold property. Rents continue their upward spiral, considerably outpacing monetary inflation by a large margin. Hence, yields are improving rapidly across the country, thereby incentivising Buy-to-Let (BTL) purchases, according to the report.

Home.co.uk reports: ‘Moreover, rental yield growth is certainly outpacing the tiny interest rate rises by the Bank of England (BoE). Furthermore, the unprecedented large and widening spread between mortgage interest rates and inflation continues to incentivise leveraged property purchases.

‘Despite a small uptick, acute scarcity persists across all regions when compared to stock totals for sale over the last decade. Real mortgage interest rates look to remain negative for the foreseeable future, even when further BoE hikes are factored in. Rents are soaring year-on-year across all regions and look set to continue to do so.’

Regarding rents, the company says that the mix-adjusted average rise for the UK is 19.1%. Supply is worsening in the rental sector, with newly available rental properties down by 23% compared to June 2021, due mainly to the drop in London.

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