Nationwide’s Affordability Report paints a concerning picture of the affordability pressures buyers and renters face and married up with that Propertymark’s’ Housing Insight Reports, drawn directly from our members’ input, delve deeper into the supply and demand dynamics of the housing sector, which offers invaluable context for agents navigating current market challenges.

HOUSE PRICE PRESSURES CONTINUE TO WEIGH ON BUYERS

The affordability analysis, outlined by Nationwide, highlights the ongoing struggle of buyers, with house prices remaining high about earnings, despite modest adjustments in some areas. Propertymark’s findings align with this trend, reporting that the average UK house price stood at £290,000 in November 2024, nearly eight times the average annual gross earnings.

With the Bank of England’s base rate holding steady at 4.75%, mortgage affordability remains a significant hurdle for many, especially first-time buyers, who now face higher monthly repayments than in previous years.

RENTAL COSTS SURGE AMID SUPPLY SHORTAGES

Affordability issues aren’t limited to homeowners—renters also feel the strain. Our latest figures show the average UK rent has risen by 9% compared to the previous year, with England’s average rent reaching £1,396. Despite these increasing costs, rental arrears showed a welcome decline, suggesting tenants prioritise rent payments even as their budgets are stretched.

However, the fundamental issue persists; demand continues to outstrip supply. On average, Propertymark members report seven applicants for every available rental property. In some areas, rents have begun to drop as tenants reach their financial limits. While this provides temporary relief for some, the larger issue of limited housing supply means that the long-term affordability challenges remain.