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TODAY'S OTHER NEWS

Capital appreciation still strong despite flurry of interest rate rises

Analysis by Rightmove suggests that capital appreciation remains strong for landlords and owner occupiers alike, despite the recent flurry of interest rate rises.

The portal says the price of property coming to market has hit a fourth consecutive record of £367,501, up by 2.1 per cent over the past month. 

Average asking prices have risen more than £55,000 in the past two years, compared to a £6,000 rise in the two years before the pandemic

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Activity levels remain strong and still significantly higher than pre-pandemic, though there are signs that the frenetic market is starting to ease.

The number of buyers contacting estate agents in the month is 31 per cent higher than the more normal 2019 market, but down 14 per cent year-on-year.

Available properties are down 16 per cent compared to last year and down 55 per cent compared to 2019, with new stock most desperately needed for two and three bedroom semi-detached homes.

 

“Though demand is softening from the heady levels we saw this time last year, the number of buyers enquiring is still significantly higher than during the last ‘normal’ market of 2019, while the number of homes for them to choose from remains more constrained” says a Rightmove spokesperson. 

“We anticipate that the effects of the increased cost of living and rising interest rates will filter through to the market later in the year, and a combination of more supply of homes and people weighing up what they can afford  will help to moderate the market.”

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  • George Dawes

    I recall Gordon Brown saying he never said this is the end of boom and bust

    Then someone played a tape where he said it 27 times

    😂

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    It will keep going up but at a lower rate, that is all. Still a good time to sell prior to the EPC disaster.

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    I think landlords should let tenants stay free, or even be paid to keep the property heated and ventilated, as the capital appreciation is enough of a reward.

    Typed by RB under duress whilst being held hostage by "activists" with halitosis.

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    Not as silly as it sounds Robert, as my properties sit empty after 2028 waiting to be sold off one per year if a guest were to be living there for free the property would not be rented, however I would not be paying 200% council tax on an empty property and my insurance company would be happy that it was not empty. the other way is to take the roof off, no council tax payable then either, we live in strange times

     
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    Good Heavens Robert. There’s no Capital appreciation, it’s ponzu money if the property went up 10% in a year and your money devalued 10% nothing gained but it’s much worse than that, everything costing you more, a lump of tax taken out annually for good measure, it doesn’t end there the more inflation continues it will incur you with capital gains tax on funny money, you will end up more money worth less than what you had, we still need our sense of humour even if it’s true.

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    Simon, yes it’s EPC + HMO Licensing + removal of Section 21, plus Section 24 removal of Mortgage interest, Penalties up to £30k on a whim, Double Stamp duty, Criminalisation of Landlords instead of Civil Procedure, a load of other Regulatory costs and Requirements. They really love us for Housing millions at no cost to them and contributing billions to the Treasury, they must be off their tree.

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