<h3>Why live in Battersea</h3><div></div><div>Battersea Power Station is a vibrant new&nbsp;<span style="background-color:initial;font-family:inherit;font-size:inherit;text-align:inherit;text-transform:inherit;word-spacing:normal;caret-color:auto;white-space:inherit;">riverside neighbourhood in London,&nbsp;</span><span style="background-color:initial;font-family:inherit;font-size:inherit;text-align:inherit;text-transform:inherit;word-spacing:normal;caret-color:auto;white-space:inherit;">centred around the iconic Grade II listed&nbsp;</span><span style="background-color:initial;font-family:inherit;font-size:inherit;text-align:inherit;text-transform:inherit;word-spacing:normal;caret-color:auto;white-space:inherit;">power station.</span></div><div><div><br /></div><div>The vast 42-acre site on the banks of&nbsp;<span style="background-color:initial;font-family:inherit;font-size:inherit;text-align:inherit;text-transform:inherit;word-spacing:normal;caret-color:auto;white-space:inherit;">the River Thames is being transformed&nbsp;</span><span style="background-color:initial;font-family:inherit;font-size:inherit;text-align:inherit;text-transform:inherit;word-spacing:normal;caret-color:auto;white-space:inherit;">into one of the city&rsquo;s largest and most</span></div><div>exciting office, retail, leisure, cultural and&nbsp;<span style="background-color:initial;font-family:inherit;font-size:inherit;text-align:inherit;text-transform:inherit;word-spacing:normal;caret-color:auto;white-space:inherit;">residential districts.</span></div><span style="background-color:initial;font-family:inherit;font-size:inherit;text-align:inherit;text-transform:inherit;word-spacing:normal;caret-color:auto;white-space:inherit;"><br /></span>
</div><div></div><div>The &pound;9 billion regeneration is set to&nbsp;<span style="background-color:initial;font-family:inherit;font-size:inherit;text-align:inherit;text-transform:inherit;word-spacing:normal;caret-color:auto;white-space:inherit;">include more than 250 shops, cafes and&nbsp;</span><span style="background-color:initial;font-family:inherit;font-size:inherit;text-align:inherit;text-transform:inherit;word-spacing:normal;caret-color:auto;white-space:inherit;">restaurants, a theatre, hotel, events venue,&nbsp;</span><span style="background-color:initial;text-align:inherit;caret-color:auto;"><span style="font-family:inherit;"><span style="text-transform:inherit;word-spacing:normal;white-space:inherit;">24,000 </span></span>sq.<span style="font-family:inherit;"><span style="text-transform:inherit;word-spacing:normal;white-space:inherit;">&nbsp;ft food hall within the power&nbsp;</span></span></span><span style="background-color:initial;font-family:inherit;font-size:inherit;text-align:inherit;text-transform:inherit;word-spacing:normal;caret-color:auto;white-space:inherit;">station, a medical centre, offices, around&nbsp;</span><span style="background-color:initial;font-family:inherit;font-size:inherit;text-align:inherit;text-transform:inherit;word-spacing:normal;caret-color:auto;white-space:inherit;">4,000 new homes as well as 19 acres of&nbsp;</span><span style="background-color:initial;font-family:inherit;font-size:inherit;text-align:inherit;text-transform:inherit;word-spacing:normal;caret-color:auto;white-space:inherit;">open and green space.</span></div><div><p><span style="background-color:initial;font-family:inherit;font-size:inherit;text-align:inherit;text-transform:inherit;word-spacing:normal;caret-color:auto;white-space:inherit;"><br /></span>Find out more in our Investor Guide:<span style="background-color:initial;font-family:inherit;font-size:inherit;text-align:inherit;text-transform:inherit;word-spacing:normal;caret-color:auto;white-space:inherit;"></span><span style="background-color:initial;font-family:inherit;font-size:inherit;text-align:inherit;text-transform:inherit;word-spacing:normal;caret-color:auto;white-space:inherit;"></span><span style="background-color:initial;font-family:inherit;font-size:inherit;text-align:inherit;text-transform:inherit;word-spacing:normal;caret-color:auto;white-space:inherit;"></span><span style="background-color:initial;font-family:inherit;font-size:inherit;text-align:inherit;text-transform:inherit;word-spacing:normal;caret-color:auto;white-space:inherit;"></span></p></div><a href="https://res.cloudinary.com/global-cms-assets-np/image/upload/v1705674074/resi/gb/Articles/PDFs/Investor_Guide_-_Battersea_Power_Station_-_DIGITAL.pdf" target="_blank"><button class="Button primary">Download a
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Investor Guide | Battersea

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Download our guide to investment in Battersea.

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<p>The second quarter didn&rsquo;t pan out quite as we expected back in April, when expectations were erring towards an autumn rather than summer election and odds on a June reduction in the base rate were looking more favorable.&nbsp; </p><p>Having mid-year election behind us will likely have a positive impact on activity in the prime market in the second half of the year, but the higher proportion of discretionary sellers who can, and indeed did, wait for the election to take place have
    impacted activity levels in Q2.&nbsp; Data from LonRes shows properties going under offer fell 18% in June and new instructions were down 8% annually too.&nbsp; </p><p>The sales market across Prime Central London (PCL) followed usual seasonal patterns, with activity higher than Q1, but homes sold fell back marginally on 2023 levels. Activity rose in the lettings market, with the usual early summer rush adding to applicant
    numbers and absorbing some of the excess stock we&rsquo;d seen enter the market earlier in the year. </p><p>July&rsquo;s Labour's victory brought much-needed political clarity, which combined with an improved economic outlook is expected to boost market confidence in the coming months. But for buyers in PCL uncertainty around key areas of government policy,
    particularly on taxation, still require further clarity. &nbsp;Non-dom rules, which both Labour and the Conservative had vowed to overhaul is just one.&nbsp; Of course, this will only impact a small proportion of PCL buyers. But this, combined with
    the usual exodus to warmer climes in July and August may well mean we&rsquo;ll need to wait until September to see what impact this will have on activity going forward.</p><h2>Prime Central London Overview</h2>
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<div style="overflow-x:auto;" align="center"><table cellspacing="0" cellpadding="0" border="1" align="center" style="width:100%;"><tbody><tr class="red"><th scope="col">PCL Sales market</th><th scope="col">Quarterly change</th><th scope="col">Annual change</th></tr><tr><td>Achieved prices &ndash; Q2 2024</td><td>-2.4%</td><td>-5.2%</td></tr><tr><td>Transactions &ndash; Q2 2024</td><td>16.4%</td><td>-4.9%</td></tr><tr><td>On market for sale &ndash; Q2 2024</td><td>10%</td><td>19.3%</td></tr></tbody></table></div><p>&nbsp;</p>
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<div style="overflow-x:auto;width:100%;" align="center"><table cellspacing="0" cellpadding="0" border="1" align="center" style="width:100%;"><tbody><tr class="red"><th scope="col">PCL Lettings market</th><th scope="col">Quarterly change</th><th scope="col">Annual change</th></tr><tr><td>Achieved prices &ndash; Q2 2024</td><td>0.9%</td><td>2.1%</td></tr><tr><td>New lets &ndash; Q2 2024</td><td>14.3%</td><td>12.8%</td></tr><tr><td>On market to let &ndash; Q2 2024</td><td>5.4%</td><td>29%</td></tr></tbody></table></div><p><sup>JLL Research, LonRes<br /><sup>&copy;</sup> Jones Lang LaSalle IP, Inc. All rights reserved</sup>.</p><h2>Sales Market</h2><p>The latest figures from the JLL Prime Central London index reflect a softening in property values across all price bands in Q2, with the most significant declines in the lower price brackets. The upper end of the market remained relatively insulated due
    to a higher prevalence of cash buyers.</p><p>Sentiment and debt costs impacted on achieved prices in the second quarter, with the JLL PCL Index showing average values fell 5.2% annually. Stock levels have been creeping up since late 2022 and by the end of June 2024, the number of properties for
    sale reached almost 3,900. This is a 19% increase on levels a year prior, driven by both increases in houses and flats listed (+26% and +18% respectively).</p><p>Activity did pick up in Q2, with 16% more homes changing hands than in Q1 and just 5% fewer than in a busy second quarter last year. Indeed, comparing transactions in Q2 this year with the 10-year Q2 average shows 8% more sales. Activity remains higher
    at the upper end of the market too, with the amount spent at &pound;5million+ in the first six months of 2024 14.8% higher than the 10-year H1 average.</p>
<iframe src="https://flo.uri.sh/visualisation/18821655/embed" title="Interactive or visual content" class="flourish-embed-iframe" frameborder="0" scrolling="no" style="width:100%;height:600px;" sandbox="allow-same-origin allow-forms allow-scripts allow-downloads allow-popups allow-popups-to-escape-sandbox allow-top-navigation-by-user-activation"></iframe><p><sup><sup></sup></sup>
</p><h2>Key highlights:</h2><p><strong>Market Activity:</strong> 4.9% fewer sales were recorded annually in Q2 2024, but despite short term challenges and the unexpected July election volumes remained 8% higher compared to the 10-year Q2 average. </p><p><strong>Record spending at &pound;10m+:</strong> Total spend at &pound;10m+ hit a record &pound;439 million for H1 2024, surpassing the previous high back in 2016.</p><p><strong>Property Values:</strong> The JLL PCL Index showed a 5.2% fall in achieved prices, with a 2.4% decline from Q1 to Q2. Homes priced under &pound;2 million saw the largest quarterly decline in values, down 3.7%.</p><p><strong>Stock Levels:</strong> By the end of June 2024, the number of properties for sale increased by 19% annually, with 26% more houses and 18% more flats on the market compared with the same point a year earlier. </p><p><strong>Discounts:</strong> Average discounts from asking prices eased from 10.3% in Q1 to 9.4% in Q2, reflecting more realistic vendor pricing. </p><p><strong>Lettings Market</strong></p><p>A steady uptick in properties on the market meant rental growth dropped back from double digit high 18 months ago to low single digits, rising 2.1% annually in Q2 2024. However, a rise in applicants means we are seeing much of this excess stock being
    taken up by tenants. </p><p>Quarterly, average rents rose 0.9% from Q1 to Q2 2024. While the lower end of the market continues to see high demand, we are beginning to see increased activity in the top end of the lettings market too. The number of properties let in Q2 up 12.8% annually
    and 14.3% higher than Q1. </p><p>Uncertainty leading up to the general election, alongside higher mortgage rates, means some prospective buyers have opted to rent instead, bolstering demand. Demand for houses rose in Q2, with a quarterly increase in rents of 2.4% (versus 0.6% for flats).</p>
<iframe src="https://flo.uri.sh/visualisation/18822064/embed" title="Interactive or visual content" class="flourish-embed-iframe" frameborder="0" scrolling="no" style="width:100%;height:600px;" sandbox="allow-same-origin allow-forms allow-scripts allow-downloads allow-popups allow-popups-to-escape-sandbox allow-top-navigation-by-user-activation"></iframe><h2>Key trends in Q2 included:</h2><p><strong>Rental Growth:</strong> Annual rental growth returned to more sustainable levels at 2.1%, with average rents rising 0.9% from Q1 to Q2 2024.</p><p><strong>Stock and Demand:</strong> A steady increase in rental properties on the market was balanced by strong tenant demand. The number of homes let priced at &pound;3,000 or more per week rose by 13.4% annually.</p><p><strong>Market Dynamics:</strong> The ongoing uncertainty related to the general election and higher mortgage rates led some prospective buyers to rent instead, further bolstering demand in the rental market.</p><h2>Outlook</h2><p>Q2 2024 was a period of mixed outcomes for the Prime Central London market. While higher mortgage rates and political uncertainties impacted the lower end, the top-end market showed robust activity and record spending.</p><p>Elevated activity and strong buyer demand in PCL align with an expected improvement in economic conditions and enhanced buyer confidence. The anticipated reduction in the base rate and more favourable mortgage terms from major lenders should foster further
    competition and growth in the market.</p><p>At JLL we forecast PCL will be one of the best performing markets over the next five years. House prices are expected to remain flat in 2024 but see growth of 19.8% by 2028, for rents we expect annual growth of 4.5% in 2024, with rents expected to increase
    by 21.7% between 2024 and 2028.</p><p>&nbsp;</p>

Prime Central London – Q2 2024

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<h2><strong>Planning and Infrastructure Bill</strong></h2>
<p>Labour has committed to building 1.5 million homes within this parliament, with an updated National Planning Policy Framework (NPPF) due in the first 100 days. The new NPPF is expected to set out some of the more detailed commitments around targets and
    land use. </p>
<p>Many of the reforms included in the Planning and Infrastructure Bill will be familiar from Labour&rsquo;s manifesto and involve improving resources and funding for local planning authorities, reintroducing planning targets and extending powers to bring
    forward stalled housing and infrastructure projects. Separately, Labour has committed to 300 additional planning officers to boost capacity. Local councils will be given greater compulsory purchase powers, with new rules on purchase compensation for
    landowners (promised to be fair but not excessive) where significant infrastructure or affordable homes are delivered. </p>
<h2><strong>Renters&rsquo; Rights Bill</strong></h2>
<p>This (mild) rebrand of the Renter&rsquo;s Reform Bill follows similar principals. The bill will abolish Section 21 &lsquo;no fault evictions&rsquo;, with new clear and expanded possession grounds for landlords, to reclaim properties when they need to
    (the need to sell or move back into the property likely to stay but beyond that we&rsquo;ll need further clarity). &nbsp;<strong></strong></p>
<p>To improve the quality of privately rented homes a Decent Homes Standard will be applied, seemingly much needed as the RICS suggests that in certain areas of the country a third of homes currently wouldn&rsquo;t comply. In addition, Awaab&rsquo;s Law,
    already in place to ensure social housing landlords are held to account on issues including damp and mould will be introduced to the private rented sector, setting clear legal expectations on landlords to rectify dangerous hazards within their properties.
</p>
<p>Rent controls do not form part of Labour&rsquo;s strategy, but tenants will be given additional powers to challenge rent increases. In addition, new laws will be introduced to end rental bidding wars, but this may prove difficult to enforce.</p>
<p>A new digital database will be introduced to allow tenants and their landlords to access key information when entering new tenancies.&nbsp; A property ombudsman service will be established to deal with disputes. Tenants will also be officially given the
    right to request a pet, which a landlord can&rsquo;t unreasonably refuse. In turn, landlords will be given the right to request an insurance policy to cover potential damages.</p>
<h2><strong>Leasehold and Commonhold Reform Bill</strong></h2>
<p>The government has committed to implement the Leasehold and Freehold Reform Act 2024. Existing leaseholds will not be abolished, but leaseholders will be given more rights. This includes the banning of forfeiture clauses, ensuring leaseholders are protected
    from losing their homes over small unpaid debts. New rules to simplify leasehold enfranchisement, right to manage and tackle unregulated and unaffordable ground rent charges will also be introduced. This will include a new legal framework to protect
    leaseholders&rsquo; rights. </p>
<p>Labour will look to restrict the sale of new leasehold flats (they will consult on the best way to do this) and look to promote commonhold. This may prove a challenge, as despite being introduced 22 years ago the government itself acknowledges that there
    are fewer than 20 commonhold blocks operating nationally. An overhaul of the legal framework and new rules around the transition from freehold to commonhold means agreeing an approach to align commonhold with modern building methods will require work.</p>
<p><img src="https://res.cloudinary.com/global-cms-assets-np/image/upload/v1721381784/resi/gb/Articles/Images/RR-19-07-Graph1.jpg" /></p>
<h2><strong>What wasn&rsquo;t included?</strong></h2>
<p>The King&rsquo;s Speech is never intended as an exhaustive list of government intentions. Beyond these three bills we&rsquo;ll need to wait a bit longer for information of a few other key manifesto pledges. </p>
<p>The focus of the King&rsquo;s Speech appeared to be on increasing delivery rather than fuelling demand. For first time buyers it is likely that the nil-rate band will return to &pound;300k (from &pound;425k) in April 2025. There was no sign of Help to
    Buy 2.0; instead, Labour is promoting Freedom to Buy. The scheme, designed to make it easier for first time buyers to secure a deposit, is similar to the current mortgage guarantee scheme. Labour has previously stated the scheme will help 80,000 young
    people onto the housing ladder over this parliamentary term. A big number, but far lower than the 52,000 Help to Buy completions recorded in just one year in 2019. </p>
<p>No mention yet on when, but overseas buyers will likely face and additional 1% stamp duty when buying UK homes in the future &ndash; an additional expense for those looking to buy in the UK but one which on its own is unlikely to have a significant impact
    on buyer activity. </p>
<p>Of greater importance for those falling into the non-domiciled (non-dom) group is Labour&rsquo;s plans on income and inheritance taxes. Non-doms paid &pound;8.9billion in tax in 2023, the highest since 2017 and not far off the &pound;11.7billion raised
    in Stamp Duty Land Tax from residential sales. There was no reference made in the King&rsquo;s Speech to non-doms, possibly meaning this has been filed in the &lsquo;too difficult&rsquo; pile for now. More clarity will likely appear in the autumn
    budget.
</p>
<p><img src="https://res.cloudinary.com/global-cms-assets-np/image/upload/v1721381784/resi/gb/Articles/Images/RR-19-07-Graph2.jpg" /></p>
<h2><strong>But is economics more important than politics?</strong></h2>
<p>The outlook for the housing market, at least in the short term, has more to do with factors which fall outside government control. The cost of debt remains a key challenge.&nbsp; We&rsquo;ve seen more competitive rates begin to enter the market in recent
    weeks, but the first official drop in the bank rate (whether that comes in August or September) will be a clear signal on the direction of travel.&nbsp; As we saw earlier in the year even modest falls in mortgage rates have the potential to drive
    activity. The latest house price data from the ONS shows an annual increase in UK house price of 2.2%, with prices rising (on an annual basis) for the third consecutive month. In London prices rose annually for the first time in a year, up 0.2%. </p>
<p>The June inflation figures give little away on the prospects for a drop on 1<sup>st</sup> August. CPI remains at 2.0%, slightly higher than the 1.9% forecast but still in line with the BoE 2% target. Services inflation, which has remained a thorn in the
    side of the MPC, remains high at 5.7% though, meaning those already on the fence could justify a stick rather than twist position. Similarly, wage growth in the three months to May slowed to 5.7% from 5.9% in April but remained higher than the Bank
    forecast back in May.&nbsp; </p>
<p>The outlook for the UK economy is improving too (not necessarily helping when we are considering cutting rates). The International Monetary Fund (IMF) has upgraded its outlook for the UK economy this year, now expected to grow by 0.7% this year, up from
    the 0.5% estimated in April. The upgrade means the UK has a higher growth forecast than Germany this year and is expected to grow at the same pace as Italy and Japan.</p>
<p>&nbsp;</p>

Residential Roundup 19 July 2024

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With Sir Kier promising to &ldquo;take the brakes off Britain&rdquo; the King&rsquo;s Speech saw announcements on a wide range of new bills. For housing there were three directly impacting the sector:

With Sir Kier promising to “take the brakes off Britain” the King’s Speech saw announcements on a wide range of new bills. For housing there were three directly impacting the sector:

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<p>But as the removal vans manoeuvre into No. 10, many in the industry will be thinking about the housing market and what the incoming Labour government will bring. Of course, housing was high on the agenda in the run up to the election, but the vagaries
    of the manifesto will now need to make way for greater clarity. <strong></strong></p>
<p>The new Prime Minister had previously committed to turbocharging the housing market from &ldquo;day one&rdquo;. Realistically, we might be waiting a few days longer to find out Sir Keir&rsquo;s plans. But those close to the top have signalled an announcement
    could be a matter of a few weeks rather than a few months away. </p>
<p>They&rsquo;ll need to pull their socks up as building 1.5 million homes over the next parliament will be a Herculean task. The main plans touted so far have been a recruitment drive for planners, with the intention to recruit 300 additional planning officers
    to ease bottlenecks and get Britain building. Undoubtedly a recognition of the challenges in the planning process, in practice this is the equivalent of less than one planner per planning authority and may not be the game changer we really need (a
    step in the right direction though). </p>
<p>The term grey belt is also likely to enter the vernacular as Labour attempt to make developing on the greenbelt more palatable (their landslide victory and corresponding majority will help here).</p>
<p>Plans are afoot, too, for encouraging first-time buyer activity through further promotion of a mortgage guarantee scheme. However, the temporary increase in the first-time buyers stamp duty threshold (from &pound;300k to &pound;425k) won&rsquo;t be extended
    under Labour &ndash; although this mostly affects higher value markets.&nbsp; </p>
<p>Before we delve too deeply into what-ifs we&rsquo;ll need to wait and see what emerges in the coming weeks. Until then, let&rsquo;s look at what the new government are inheriting:</p>
<h2><strong>The economy</strong></h2>
<p>Whisper it quietly, but things might not be quite as bad as we thought. The new Labour government aren&rsquo;t inheriting an economy in rude health, but quarterly GDP growth for Q1 was revised up in June to 0.7% (from 0.6%), putting GDP 0.3% higher than
    it was a year earlier in Q1. </p>
<p>With growth revised up, expectations of economic growth at sub 1% in 2024 may be looking conservative. Oxford Economics expect 0.9% and consensus forecasters 0.5% this year, but we could well see these figures creep up as we move through the summer. </p>
<p>Despite CPI hitting the 2% target rate, stubborn services inflation has thrown some cold water on the prospect of multiple rate cuts this year.&nbsp; But we still expect the bank rate will be cut before the year end, meaning more favourable mortgage rates,
    which are already starting to creep into the market, continue to emerge in the second half of the year.</p><img src="https://res.cloudinary.com/global-cms-assets-np/image/upload/v1720173441/resi/gb/Articles/Images/JLL-house-prices-labour.png" />
<h2><strong>House prices</strong></h2>
<p>House prices edged up in June, 0.2% higher month-on-month and 1.5% higher than they were at the same point a year ago. The latest figures from Nationwide show London was the only region in southern England where prices have risen in the last 12 months,
    up 1.6%. East Anglia saw the most significant annual fall at -1.8% with the North West and Northern Ireland both recording annual increases of 4.1% in Q2 2024. </p>
<p>House prices have risen 59% since Labour were last in power back in 2010. They are up 68% since they last won an election back in 2005 and up 353% since the last won an election in opposition back in 1997. In 14 years under the Conservatives (2010 to
    2024) prices have risen by 57%, versus 191% in the 13 years under Labour (1997-2010)<br /></p>
<h2><strong>Activity</strong></h2>
<p>Mortgage approvals for house purchase continue to hover around the 60,000 mark, around 10,000 (or 19%) higher than they were a year ago. Despite rising off a low base, activity remains around 15% down on long-run norms. </p>
<p>The number of transactions has risen too so far this year.&nbsp; The latest May figures show an estimated 91,660 sales, 24% (or almost 18,000) higher than volumes in May last year and just 2% shy of the 2015 to 2019 average.</p>
<p>The latest S&amp;P Global Construction Purchasing Managers&rsquo; Index (PMI) was released the day we went to the polls. The UK construction sector remained in growth territory for the fourth consecutive month in June, albeit dipping slightly month-on-month.
    Growth was led by the commercial sector, with housing, which had moved into positive territory for the first time in 19 months in May, dropping back in June.</p><img src="https://res.cloudinary.com/global-cms-assets-np/image/upload/v1720173441/resi/gb/Articles/Images/JLL-rental-growth-price-growth.png" />
<h2><strong>Rents</strong></h2>
<p>As we enter the busy summer market for lettings, prices achieved on new lets, according to the latest June figures from Homelet, were up 6.9% nationally. London and the South West were the only regions where rents fell month-on-month but were still 4.9%
    and 3.4% higher annually. </p>
<p>Rental growth rates in London have finally dropped below wage growth, meaning the rent to affordability ratio dropped from 40% in January to 38.9% in May, but it remains 10 percentage points higher than it was a decade ago. </p>
<p>Results for the latest JLL Buyer and Tenant Survey highlight the challenge facing tenants, with half of the tenants surveyed spending more than 50% of their take home pay on rent each month, up from 45% in 2022.&nbsp; To read more from the latest JLL
    Buyer and Tenant Survey <a href="https://residential.jll.co.uk/insights/research/buyers-and-tenants-survey-2024">click here.</a></p><img src="https://res.cloudinary.com/global-cms-assets-np/image/upload/v1720173440/resi/gb/Articles/Images/JLL-rent-to-income-ratio.png" />

Residential Roundup 5 July

The Labour Party have won more than 400 seats, giving them a comfortable majority in the 2024 general election.

<strong>The Labour Party have won more than 400 seats, giving them a comfortable majority in the 2024 general election.</strong>

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<h2>Introduction<br /></h2><p>The JLL Buyers and Tenants survey report explores trends in living priorities, energy efficiency and market sentiment. This years findings provide an insight into what drives buyers&rsquo; and tenants' decision when choosing a home, including which aspects
    of a home they prioritise and which could potentially command a premium. </p><p>The first few months of <del cite="mailto:Dixon,%20Marcus" datetime="2024-06-27T10:28"></del>the year have provided some cause for optimism. In the sales market, an increase in demand from buyers has been evident, with many optimistic for interest rate
    cuts later in the year. In the rental market, rental growth has cooled to more sustainable levels, and tenants are now able to move between properties without fear of being faced with large rent increases.</p><p>Both existing home owners and first time buyers have cited difficulties with home purchase. Most allude to&nbsp; high mortgage costs, with 61% of buyers waiting for mortgage rates to fall before they commit to purchase. For current tenants, mortgage costs
    and the deposit required are the largest barriers to home ownership.&nbsp;</p><h2>Buying and renting a home</h2><p>Higher mortgage rates over the past 18 months have impacted market sentiment and some buyers&rsquo; ability to purchase homes. Data from the 2024 survey shows that just 27% of buyers continued to purchase their original choice of home, down from 45% in
    the 2023 survey. This year, 26% of buyers decided to delay their home purchase, with 16% now looking at smaller properties or reducing their budget. </p><p>Of those who are delaying, 61% said they were waiting for mortgage rates to fall, while an additional 23% thought house prices were going to continue to fall.</p><p>&nbsp;</p><iframe src="https://flo.uri.sh/visualisation/18524851/embed" title="Have higher mortgage rates impacted your decision to buy a home?" class="flourish-embed-iframe mob-height-two" frameborder="0" scrolling="no" style="width:100%;height:500px;" sandbox="allow-same-origin allow-forms allow-scripts allow-downloads allow-popups allow-popups-to-escape-sandbox allow-top-navigation-by-user-activation"></iframe><p>&nbsp;</p><p>Although rental growth is beginning to ease to more sustainable levels in most areas of the UK tenants are still spending a larger proportion of their take home pay on rent. This year, 50% of tenants spend 40% or more of their take home pay on rent each
    month, up from 49% last year, and 45% in 2022. Just over half of tenants are splitting their rental payment with another person.</p><p>26% of tenants said they think their next property will be one they have purchased, mirroring last year's results. However, more believe their next home will be another rental property (68% this year vs. 64% last year).</p><p>&nbsp;</p><iframe src="https://flo.uri.sh/visualisation/18427294/embed" title="Do you split your rental payment with another person?" id="left_frame class=" "=" " frameborder="0 " scrolling="no " style="width:49%;height:400px;" sandbox="allow-same-origin allow-forms allow-scripts allow-downloads allow-popups allow-popups-to-escape-sandbox allow-top-navigation-by-user-activation "></iframe>&nbsp;&nbsp;<iframe src="https://flo.uri.sh/visualisation/18427536/embed " id="right_frame title=" tenants'="
    " next=" " class="flourish-embed-iframe mob-height-two" frameborder="0" scrolling="no" style="width:49%;height:400px;" sandbox="allow-same-origin allow-forms allow-scripts allow-downloads allow-popups allow-popups-to-escape-sandbox allow-top-navigation-by-user-activation"></iframe><h2>&nbsp;</h2><h2>Living Priorities</h2><p>Energy efficiency and broadband speed continue to occupy the top spot for residents&rsquo; most important aspects of a home this year. </p><p>Buyers and tenants have settled into a hybrid working environment with residents&nbsp; focusing on making their home a comfortable working environment. This year, 74% of tenants and 75% of buyers are in the office at least 1 day a week, while a quarter
    of residents are in full time, down from 28% last year.</p><p>Space for a home office and the need for fast broadband are both high on occupiers wish lists.</p><p>When thinking about the area in which residents are choosing to live, we continue to see public transport provision remain an essential requirement. 97% of buyers and 91% of tenants voted public transport as the most important aspect when choosing an
    area to live. Aside from this, it is evident that the local amenities are an essential part of living and finding a place which makes residents happy.</p><p>&nbsp;</p><iframe src="https://flo.uri.sh/visualisation/18523494/embed" title="Voted as either very important or important by residents" class="flourish-embed-iframe mob-height-two" frameborder="0" scrolling="no" style="width:100%;height:600px;" sandbox="allow-same-origin allow-forms allow-scripts allow-downloads allow-popups allow-popups-to-escape-sandbox allow-top-navigation-by-user-activation"></iframe><h2>&nbsp;</h2><h2>Sustainable living and energy efficient homes</h2><p><em>&ldquo;Although the initial shock of rising energy and household costs has subsided, the energy efficiency of our homes is still proving crucial to residents&rdquo;.</em></p><p>The results of the 2024 survey mirror much of what we saw last year, with 70% of residents saying the energy efficiency of their home has increased in importance to them over the past year. Almost all buyers and tenants said that the energy efficiency
    of their next home will be either crucial or important to them. </p><p>Both buyers and tenants would be willing to pay a premium for a home if it meant reduced costs. Most notably, 77% of tenants this year said they would pay a premium to have bills included in their rent. </p><p>Cooling the home has now become just as important as heating. 43% of tenants said they had experienced overheating in their homes during the summer months, with most not having access to air-con/cooling systems within their current property.</p><p>&nbsp;</p><iframe src="https://flo.uri.sh/visualisation/18524562/embed" title="Increased importance in energy efficiency of home" class="flourish-embed-iframe mob-height-two" frameborder="0" scrolling="no" style="width:100%;height:400px;" sandbox="allow-same-origin allow-forms allow-scripts allow-downloads allow-popups allow-popups-to-escape-sandbox allow-top-navigation-by-user-activation"></iframe><p>&nbsp;</p><iframe src="https://flo.uri.sh/visualisation/18524654/embed" title="70% buyers would pay a premium" class="flourish-embed-iframe mob-height-two" frameborder="0" scrolling="no" style="width:100%;height:500px;" sandbox="allow-same-origin allow-forms allow-scripts allow-downloads allow-popups allow-popups-to-escape-sandbox allow-top-navigation-by-user-activation"></iframe><p>&nbsp;</p><iframe src="https://flo.uri.sh/visualisation/18524921/embed" title="Why energy efficiency is important to residents" class="flourish-embed-iframe mob-height-two" frameborder="0" scrolling="no" style="width:100%;height:500px;" sandbox="allow-same-origin allow-forms allow-scripts allow-downloads allow-popups allow-popups-to-escape-sandbox allow-top-navigation-by-user-activation"></iframe><p>&nbsp;</p>For more information on the full results of the JLL Buyer and Tenant Survey please <a href="mailto:Meg.Eglington@jll.com">contact us</a>

Buyers and Tenants Survey 2024

The JLL Buyers and Tenants survey report explores trends in living priorities, energy efficiency and market sentiment.

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<p>PRIVACY NOTICE</p>
<p>Jones Lang LaSalle (JLL), together with its subsidiaries and affiliates, is a leading global provider of real estate and investment management services. We take our responsibility to protect the personal information provided to us seriously.</p>
<p>Generally the personal information we collect from you are for the purposes of dealing with your enquiry.</p>
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