Watford & Hertfordshire property news

After the disruption caused by April's stamp duty changes, the market appears to be finding its feet again. Halifax is reporting that house prices were flat in June (0.0%), but that's up from a 0.3% fall in May. The average house price is now standing at £296,665, some 2.5% higher than it was this time last year.

As ever, there were some wide regional variations, though there are some very encouraging signs. London sits near the bottom of the regional table with an annual growth of just 0.6%. First-time buyer numbers have returned to pre-stamp duty rise levels, mortgage approvals have picked up, and May saw the highest number of sales agreed since March 2022.

In addition, lenders have responded to new regulatory guidance by taking a more flexible approach to affordability assessments. Halifax, for example, says it has now given access to mortgage deals to 3,000 buyers (including more than 1,000 first-time buyers) over the last two months who wouldn't previously have qualified.

Matthew Marchant, Director of Sales at Rolstons, says: "The market's resilience continues to stand out, and after a brief slowdown following the spring stamp duty changes, mortgage approvals and property transactions have picked up, with more buyers returning to the market.

"A few key factors are helping that: wages are still rising, which is easing some of the pressure on affordability, and interest rates have stabilised in recent months, giving people more confidence to plan ahead."

However, challenges remain - affordability is still stretched, particularly for those ending fixed-rate deals. The economic backdrop also remains uncertain; while inflation has eased, it's still above target, and there are signs the jobs market may be softening.

Rightmove's data shows that asking prices fell by 0.3% in June, as more properties came onto the market and sellers were forced to lower their expectations amidst increasing competition.

Nationwide is reporting prices fell by as much as 0.8%, although the lender says this is almost certainly the result of the stamp duty rise and is expecting activity to pick up during the summer.

Rental & Buy To Let Market

Rents continue to rise, but the pace of growth is showing yet more signs of moderating. HomeLet's rental index reveals the average UK rent increased to £1,307 in May, up 0.7% monthly and just 0.8% higher than a year ago.

There was a more mixed picture in London, where the average rose by 0.3% in May to £2,088 per month, but that's 2.3% lower than a year ago. However, there are some very wide variations within London's boroughs, ranging from 8.1% annual growth in Barnet to a 7.5% fall in Lambeth.

On a regional level, HomeLet reports the strongest annual rises are occurring in the East of England at 4.2%, South West at 3.9%, and South East at 3.9%. Greater London's 2.3% fall makes it one of the weaker-performing regions.

Demand from tenants, however, remains robust. For the first time in four months, void periods shortened, dropping to 20 days in May.

That may in part be due to tightening supply. Industry analysis suggests smaller-scale landlords are increasingly selling their rental properties ahead of the Renters' Rights Bill. Those numbers could accelerate after it becomes law sometime in the autumn.

On a more positive note, rental affordability is slowly improving. Homelet's data shows UK tenants are now spending 33.1% of their income on rent, down from 33.5% a year ago. In London, where rents are much higher, affordability is heading in the opposite direction, with tenants now spending 39.2% of their incomes on rent, up from 38.9% in 2024.

If you'd like to talk to an agent for more personalised advice, our team is always available to help. We'd love to hear from you for a quick chat or a no-obligation property valuation.

Warm wishes

The team at Rolstons