Your August-September 2022 property market update from Quealy & Co

Figures released by property website Rightmove have revealed a drop in asking prices for new houses coming to the market for the first time this year. Read on to find out more in the August-September property market update from the team at Quealy & Co Estate Agents in Kent.

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House prices fall for the first time in 2022

Figures released by property website Rightmove have revealed a drop in house prices for the first time this year. 

According to their data, the average asking price for a UK property fell by almost £5,000 in August to £365,173 – a loss of around 1.3%. 

The fall in house prices was largely expected, with August traditionally being a quiet month for the property market as summer holidays are in full swing and homeowners are holding off moving until children go back to school. 

The drop in prices isn’t expected to last, with property experts predicting rising prices again from September onwards.

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Under-30s struggling more than other working-age groups with unaffordable rents

Data released by a leading property market consultancy has revealed that under-30s are spending more of their income on rent than any other working-age group.

The figures, which cover 150,000 under-30s show that 40% are spending more than 30% of their salary on rent – the highest figure for five years.

While the least affordable areas are unsurprisingly in London, rent affordability for young people is a growing problem around the country, with Rotherham, Bolton, Salford, Dudley and Walsall all appearing high on the list of unaffordable places.

The increase in rental costs is largely being driven by a shortage of properties on the market and an increase in demand, with reports that some renters are offering to pay over the asking price each month to secure a property, even when they can’t afford it.

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Mortgage rates are forecast to rise again in September

Mortgage rates are expected to rise by as much as 0.5% next month, following a double-digit rise in inflation. 

The Bank of England’s Monetary Policy Committee will be meeting on 15th September, when an increase is expected to be announced, with most leading economists forecasting a 0.5% rise in interest rates, up from the previously expected 0.25%.

The increase will mean another rise in mortgage repayments for homeowners on variable and tracker mortgages, but for homeowners with fixed-rate mortgages coming to an end, there’s still time to refix based on the lower rates prior to 15th September.

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House shares on the rise with the over-50s

Popular flat-sharing website, SpareRoom, has revealed a growing number of over-50s are looking for house and flat shares to cope with rising rents.

Their figures show a staggering 239% increase in demand from 55 to 64-year-olds since 2011 and a 114% increase in demand from 45 to 54-year-olds.

25 to 34-year-olds still make up the majority of sharers, but a senior director at SpareRoom expects the rise in demand from over-50s to continue, as the cost-of-living increases and solo renting becomes more unaffordable for many people.

The findings are common across the sector, with another leading flat-sharing website revealing a big increase in demand from over-55s. Cohabitas, which focuses on over-40s, has seen a 51% increase in demand from 55 to 64-year-olds looking for a shared property in the past six months, while they’ve also seen a 44% increase for all users in the same time period this year, compared with 2021.

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Doc Martin property put up for sale

The Cornish cottage which features in the popular ITV drama Doc Martin has been put up for sale by its owners.

Fans of the show, which stars Martin Clunes as the grumpy doctor, will know the cottage from its fictional setting of Portwenn. However, it’s based in the charming coastal hamlet of Port Isaac, which is known for its cobbled streets, picturesque fishing harbour and stunning seaside views.

Filming for the show’s 10th and final series has already taken place, so would-be buyers won’t have actors and a camera crew to contend with any longer, although fans of the show are likely to still flock to the village.

If you’re interested in owning a small piece of TV history, the property is for sale with an asking price of £1.15 million.

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Would you like free, no obligation property advice?

For more property news and updates and a more detailed overview of the Kent market, get in touch with Quealy & Co. Call us on 01795 429836 or email hello@quealy.co.uk to chat with a member of our friendly and experienced team.