Press Round Up October 2024

Tue 26 Nov 2024

Rents continue to rise, according to RICS. Jeremy Leaf, principal of Jeremy Leaf & Co, told City AM: “The unfortunate loss of too many good landlords from the private rented sector without being replaced in sufficient numbers has meant choice for the steady increase in tenants is limited, resulting in hardening rents. When the implications of the Renters’ Rights Bill are more fully appreciated as it passes through Parliament, other landlords may follow suit if unable to sell before the expected CGT increase in the Budget. However, in our offices we have noticed affordability concerns are weighing heavily on tenants so a significant proportion are simply unable to afford to pay much more. Therefore, renewals are up and landlords remaining in the sector are insisting on even stricter references before proceeding."

House prices rose again in August, according to the Land Registry. Jeremy Leaf told Money Week: “This most comprehensive of all house-price surveys, as it includes cash and mortgage transactions, demonstrates once again considerable market strength despite reflecting activity over the past three months at a time of economic and political turbulence.” He explained further to Forbes: "Today’s larger-than-expected fall in inflation, added to yesterday’s wage growth figures, will raise expectations of further cuts in mortgage costs and be a welcome shot in the arm to buyer confidence."

The Government has promised to build 1.5 million new homes in the next five years but will the Budget deliver on this? Jeremy Leaf told The I Paper: “The importance of improving the supply of affordable housing to rent and buy as well as housing transactions in view of their multiplier effect on so much of the economy – particularly job and social mobility – do not seem to be in dispute. We will be keeping a close eye to see what impact the Budget will have on these key areas. For instance, will there be progress in increasing the number of planning applications to accelerate private and social housebuilding delivery?"

The Government missed the opportunity to extend the stamp duty holiday for first-time buyers in the Budget. Jeremy Leaf told Mail Online that first-time buyers need to move quickly to beat the April deadline: “As the deadline looms, first-time buyers need to ensure they are ready to act quickly having spoken to a mortgage broker and getting their finance and legal representation lined up. Ideally, work on recommendations when it comes to a broker or solicitor so you know you are getting someone who is efficient and will advise you correctly.” 

Mortgage approvals climbed again in September, according to the Bank of England – reaching the highest level since August 2022. Jeremy Leaf told PrimeResi: “Mortgage approvals always set the direction of travel for market activity over the next quarter at least. These latest numbers show that momentum over the past few months has been sustained and we are looking forward to an upward trajectory into early 2025. We have noticed in our offices too buyers are shrugging off concerns about what may be a ‘painful’ Budget and consequences for affordability while taking advantage of rising incomes and anticipating lower mortgage rates."