May 2024 Monthly Market Report For Cornwall

How Will the Election Result Affect the Cornwall Rental Market?

The big talk currently is, of course, the election announcement. Predictions of how that could impact the rental market are thin on the ground. The four main political parties have outlined their plans for the private rented sector, but until full manifestos have been released, there is little definitive information.

The Conservative Party has yet to publish its manifesto, but the stalled Renters Reform Bill may provide insights into their approach. Initially slated to become law by Christmas 2023, the Bill faced numerous delays and failed to receive Royal Assent before parliament’s dissolution, necessitating fresh legislation from the new government.

Labour’s stance remains somewhat unclear. Angela Rayner has several times been quoted as saying that they will be abolishing no-fault evictions within the first 100 days of taking office but little else is confirmed regarding their private rental sector policies.

The Liberal Democrats have stated that they view the private rented sector as “fundamentally unfair and under-regulated.” They have proposed to bring in a national licensing scheme for landlords and holiday lets, minimum standards for landlords and property managers, improved security of tenure, and rent controls tied to the Bank of England Base Rate during contract periods.

The Green Party’s Housing Policy outlines plans to phase out assured shorthold tenancies in favour of periodic tenancies with shorter notice periods for tenants, abolish Section 21, introduce rent controls through a ‘Living Rent’ capped at 35% of local median take-home pay, toughen housing standards, and implement a national landlord licensing scheme.

As the election nears, voters can expect more detailed policy proposals from the major parties regarding the future of the private rented sector.

What Impact Will the Election Have on Cornwall’s Property Prices?

The recent election announcement has understandably led to quite a few people asking us what we think will happen in Cornwall with property prices. Some have been concerned about it causing uncertainty and instability but the data tells a very different story. 

Nationwide’s chief economist, Robert Gardner, said: “With the recent announcement that the UK general election will take place on 4 July, we have analysed house price movements in the months around previous elections, and also the 2016 EU referendum.

“Past general elections do not appear to have generated volatility in house prices or resulted in a significant change in house price trends.”

Analysis by eXp UK even shows that since the 1980s, house prices have climbed by an average of 5.4% in the year that followed a general election.

Gardner concluded: “2019 is a notable exception, but this was due to the impact of the pandemic, with the initial lockdown in 2020 suppressing housing market activity. Activity subsequently bounced back once restrictions began to be lifted.

“It appears that housing market trends have not traditionally been impacted around the time of general elections.

“Rightly or wrongly, for most homebuyers, elections are not foremost in their minds while buying or selling property.”

What Happened in the UK Rental Market in May 2024?

According to the latest rental index from Goodlord, rents across England have reached their highest levels since October of the previous year. Over the last month, rents have experienced a modest 1% increase between April and May. However, this rise signifies a substantial 6% year-on-year increase in rental costs.

In May, rents climbed to a new seven-month high, with the average cost of a rental property in England now standing at £1,183 per calendar month (pcm). This figure represents a 1.4% increase compared to April’s average of £1,166 and marks the highest rent average recorded since October 2023, when rents on new tenancies stood at £1,190 pcm.

On a year-on-year basis, average rents in May have increased by 6.4%, a figure consistent with the year-on-year rent rises observed throughout 2024 to date. Compared to May 2023, the cost of renting a property in England has risen by £70.

These figures paint a picture of a rental market that continues to experience steady growth, with tenants facing higher costs as demand for rental properties remains strong across various regions of England.

What Happened to UK Property Prices in May 2024?

Across the UK in May, house prices rose, when seasonally adjusted, from 0.6% in April to 1.3%. This is a 0.4% increase month on month according to the new data released by Nationwide. 

Gardner said: “The market appears to be showing signs of resilience in the face of ongoing affordability pressures following the rise in longer-term interest rates in recent months.

“Consumer confidence has improved noticeably over the last few months, supported by solid wage gains and lower inflation.”

What Happened to the Cornwall Rental Market in May 2024?

Let’s take a closer look at what is happening in the lettings market in Cornwall during May 2024. By regularly examining the facts and data, we provide valuable insights to landlords and tenants, helping you make informed decisions in the ever-changing Cornish rental property market. 

From this month, we will be using a different source for some of the data so it may look quite different from previous reports. We will use the information provided by Home.co.uk moving forward, which, we hope will give a broader picture of the whole market locally and not just the information Rightmove provides. 

As their website explains: “Established in 1996, Home.co.uk has used search engine technology to build and maintain the most comprehensive database of UK residential properties advertised for sale and rent on the Internet.”

There are currently 346 properties available to rent in Cornwall (this figure doesn’t include short-term or student lets). Last month we saw 342 available, 384 in March and 388 in February. There are 117 that have become available in the last 14 days. 

The average property rent is £1,252 pcm, which is down slightly from last month’s which was £1,276 pcm but up from the month before when it was £1,276 pcm.

Here is a table to compare the six months prior:

Average Property Rent in Cornwall

Focus on the Falmouth Rental Market

Let’s take a closer look at the rental market in Falmouth this month. 

There are currently 21 properties available for rent in Falmouth, 12 of which are new to the market as of the last 2 weeks.

The average property rent in Falmouth is £1,626 pcm. Thirteen of the properties available are in the £1,000 – £2,000 price range. Four available are in the £500 – £1,000 range and 4 in the £2,000 – £5,000 range.

Most of the properties available are houses (10) with an average rent of £1,980 pcm. There are also 8 flats available with an average rent of £1,479 and 3 rooms that are, on average, £835 pcm.

Barratt Homes has started work on site in Budock, on the edge of Falmouth, where 133 homes are to be built. They will range from two- to four-bedrooms. There will also be 2.2 acres of open ground and a playing ground for children. Thirty-five percent of the properties on the site will be, what is known as, affordable housing. 

Cornwall Live said about the development: “Key sustainability features include the installation of bat and bird boxes for each home; designation of 1.4 acres of biodiversity areas; planting of over 100 new trees, including an orchard area; planting of more than 5,900 new sapling hedgerows; implementation of bee-friendly planting across the development; creation of hedgehog highways to support local wildlife; installation of electric car charging points and solar PV panels on all homes; and use of timber-framed construction for homes to reduce environmental impact.”

Many local residents don’t feel there is the infrastructure locally to support a development of this size. As required by law, Barratt Homes will be providing a total of £570,019 in Section 106 allocations towards local education, transport, NHS services and biodiversity initiatives. However, this is seen as a drop in the ocean by many living in the area.

That’s all for this month’s market report so if you’re looking for any further information about the Cornish property market, please feel free to contact us. 

If you’re thinking of buying, selling, letting or renting property in the county, please don’t hesitate to get in touch. You can call 01326 331812 or email hello@llcoproperty.com.