Average property price: £274,000
12-month price growth: 9.6%
Average rent PCM: £1,064
12-month rental growth: 8.5%
Monthly rental growth: 0.4%
January saw the UK property market continue the strong positive growth that 2021 ended on, with a rise in property prices of nearly 10%.
On a regional level, the East Midlands had the largest growth, coming in at an annual rise in prices of 11.6%. London lagged behind the rest of the UK, only recording a growth of 2.2%. This is partially due to the lower affordability of the London property market, as it traditionally lags behind the rest of the country.
For example, the average price of property in London was £510,000, nearly double the national average. The North East had the lowest average property value, coming in at £150,000.
This growth kicked off 2022 in good fashion, with high demand for housing helping to drive the growth in house prices. Savills reported that demand for all kinds of housing was up 49% in the 4 weeks to mid-January compared to the same period 2018-21.
Partially, this was due to the low supply of housing available on the market at the time, meaning the market was far more competitive as more potential buyers were trying to purchase a smaller number of properties.
The rental market also experienced similar growth, with rents rising slightly from December 2021 as the high demand from renters carried on into the new year. This was exciting for buy-to-let investors, as it set up 2022 to be a prosperous year for the sector.
As more people began working remotely during 2021, where they chose to rent became more important. New build properties with lots of outdoor space and amenities such as gyms, concierges and parking became more popular as a result of this.
The North-West saw the largest month-on-month rental increase, with rents rising by 1.3%, while the North-East was the cheapest area to rent in, with an average monthly rent of £578.