Nick Millican: Rent Is Up, But House Prices Are Down

The UK is experiencing high rent increases while housing prices are dropping. Rent prices at present, according to Nick Millican, rose by 0.8 percent last month. The highest rate increase London has seen since 2006.

The average home price has fallen by 0.1 percent over the last 12 months. Millican states the drop may seem small, but it is the first time mortgage rates and prices have dropped on an annual basis for some time. Nick Millican notes that it was last summer when house prices were up. 

The rise in rental prices is hurting renters, according to Millican. There is only one way to ease the trend. There needs to be a policy to promote more and better rental property, said the real estate expert. As an agent, Nick Millican is well aware of these changes and what it means for clients..

As for the housing market, the real estate expert believes those waiting on the sidelines for the economy to improve and for mortgage rates to decline will be ready to start buying in 2024. Nick Millican states that if mortgage rates continue to fall and borrowing becomes affordable, housing prices will steady. 

Those who have a mortgage, according to Millican, have yet to see a change in their mortgage rates since the Bank of England started rising rates in 2021. Many homeowners have yet to feel the effects of the increase. As Nick Millican finally states, they may be surprised when the rates catch up to them. Though no new rates are on the horizon, homeowners could see a £3,000 rise in their payments.