Anna commented in industry and national press on two interesting data releases this week:
- Housing transactions were 12.1% lower in April 2022 than in April 2021 and 3.8% lower than March 2022, according to HMRC
- May saw the tenth successive monthly increase in house prices, keeping price growth in double digits at 11%, according to the Nationwide House Price Index.
Many will be wondering why house prices remain so buoyant, in the context of post-Covid, post-Brexit and mid-Ukraine turmoil, and with the reduction in transactions.
Much like for the wider economy, house price inflation is being driven by shortages of supply. This shortage relates to housing in general, and to quality housing that people can afford, in the places they want and need to live, in particular.
So what next?
Professional investors are becoming increasingly vital.
Many smaller ‘mom and pop’ landlords are increasingly fearful of the 168 laws and regulations governing residential property and its management, rising interest rates and the impacts of Section 24 on their tax bills. Many are selling up. Yet this is vital housing for people and communities up and down the country.
The regulatory landscape no longer favours smaller private landlords. Professional investors looking to buy, improve and rent out these properties have a great opportunity to help improve the quality of housing
Thanks to the following publications for sharing my thoughts on the latest market data: