Published: 22/06/2022 By Tam van WykWith the Queen’s Platinum Jubilee, June has been an incredible month. There’ve been flags and street parties everywhere and it has been lovely to see so many communities coming together in celebration. When you think about it, 70 years in the same job is an amazing feat and one few of us can ever hope to match.
So much has changed since the Queen first came to the throne in 1952. It’s hard to get your head around the idea that the average property cost £1,891 at the time! Mind you, the average wage was only £452 per year (see this month’s add value article). What is even more amazing is what a good investment property has turned out to be. That average property is now worth £269,914, which is 300% above its value if you take inflation into account.
And talking about rising values, despite yet another increase in the base rate, property prices continue their upward trajectory. It won’t last forever, though, and price rises are beginning to show signs of slowing. Most commentators believe that the slowdown will become more pronounced in the autumn when annual growth should settle down to somewhere around 5%.
In the rental sector, we are now heading towards one of the busiest times of the year, with rents rising and supply shortfalls. At the same time, the government has released some more details of their Renters’ Reform Bill (see National Article), which has already been criticised by many landlord groups. It’s the banning of Section 21 Notices that is causing the most concern, as it will make it more difficult for owners to repossess their homes.
Although it will mark the end of no-fault evictions, it will still be possible to evict tenants if you wish to sell, there is any anti-social behaviour or tenants are more than 3 months in arrears. The Government has also announced the introduction of the Private Renters’ Ombudsman, who they claim will help reduce landlords’ and tenants’ legal costs and speed up the resolution of any disputes.