Welcome to LL&Co’s Cornwall Property Market Report for December 2024. By keeping a close eye on the latest market trends, we aim to help you make well-informed decisions whether you’re renting, buying, or investing in Cornwall’s housing sector.
UK Housing Market Overview – December 2024
Looking at the wider UK housing market in December 2024, we saw a mix of resilience and regional variation, amid a shifting economic landscape. According to Nationwide, house prices rose by 0.7% from November, bringing the annual growth rate to 4.7%, with the average price reaching £269,426. This increase was largely driven by buyers eager to secure properties before the anticipated stamp duty changes due in April 2025.
On the other hand, Halifax recorded a slight decline of 0.2% in house prices for December, marking the first drop since March. Despite this, prices were still 3.3% higher compared to the same month last year. This contrast between Nationwide and Halifax highlights the inherent fluctuations in housing market data.
Regionally, Northern Ireland saw the highest annual growth in house prices at 7.1%, while East Anglia experienced the most modest increase, at just 0.5%. This emphasises the importance of local market dynamics in shaping property values. Additionally, mortgage approvals rose to their highest levels since August 2022, indicating sustained buyer interest despite the affordability challenges caused by higher mortgage rates. The approaching stamp duty changes are expected to further boost activity in early 2025, as both buyers and sellers look to capitalise on the current conditions.
UK Rental Market Trends – December 2024
Turning to the UK rental market in December 2024, we observed a seasonal dip in average rents, marking the fifth consecutive month of reductions. The average rent across England fell by nearly 2% month-on-month to £1,185 pcm. While this represents a decline, rents were still over 3% higher than the same month in 2023, indicating continued demand.
This decrease followed a record-high summer when average rents peaked at £1,470 pcm in July 2024. The seasonal dip brought rents 19% below that July peak, but the 3.3% annual increase recorded in December was the smallest year-on-year rise of 2024, suggesting rents may be stabilising.
Void periods—how long a property remains unlet—held steady at 21 days, compared to 20 days in December 2023. This is still much higher than during the peak demand in July, when void periods were as short as 11 days. Regionally, the South East saw the biggest annual rent rise, with an increase of 5.7%, while rents in the North East only rose by just over 2%.
Looking ahead, rents are expected to rise again in 2025. New policies, such as the Renters’ Rights Bill aimed at increasing tenant protections, and additional compliance requirements for landlords, could exert upward pressure on prices. The ongoing imbalance between supply and demand is also likely to contribute to rising rents in the year ahead.
Cornwall Property Market – December 2024
In Cornwall, the property market showed signs of cooling in December 2024, with average house prices decreasing by 1.3% from November, bringing the average to £309,778. This drop was more significant than the 0.5% decrease seen across the South West, and contrasted with a slight increase of 0.1% across the UK overall.
Annually, Cornwall’s property prices fell by 3.5%, representing a decrease of around £11,000. This placed Cornwall 18th out of the 26 local authorities in the South West for annual price changes. By comparison, the South Hams saw an increase of 5.6%, while Torridge recorded an 8.9% decline.
First-time buyers in Cornwall paid an average of £253,300 in December, which was £9,600 less than the previous year, but £62,200 more than in December 2018. Former owner-occupiers paid around £350,000, marking a 38.1% premium over first-time buyers. Detached properties saw the biggest monthly price drop of 1.5%, with an average price of £456,718, and experienced a 3.4% decline over the year.
Cornwall’s housing market in December reflected a cooling trend, with both monthly and annual declines surpassing regional averages.
Cornwall Rental Market – December 2024
The rental market in Cornwall remains dynamic, with a broad range of properties available. According to Home.co.uk, there were 710 rental properties listed in December, with 102 new listings in the past 14 days. The average rent across all property types stood at £1,508 pcm, showing strong demand in the region.
Most properties fall within the £1,000 to £2,000 pcm range, with 339 listings in this category. Properties priced between £500 and £1,000 pcm make up the second-largest group, with 236 listings. At the higher end of the market, 122 properties are priced between £2,000 and £5,000 pcm, and six properties command rents over £5,000 pcm. More affordable options are limited, with just five properties listed in the £250 to £500 pcm range and two under £250 pcm.
Looking at rental prices by property size, one-bedroom homes average £844 pcm, with 93 properties available, while two-bedroom properties average £1,081 pcm with 215 listings. Three-bedroom homes average £1,474 pcm, with 212 available. Larger homes, such as four-bedroom properties, average £2,053 pcm, and five-bedroom properties average £3,013 pcm across 43 listings.
Cornwall’s rental market continues to cater to a range of budgets, though higher-end properties dominate the landscape. The steady influx of new listings means that tenants can find competitive options, though the market remains under pressure from continued demand.
Penryn Rental Market – December 2024
Focusing on Penryn, the local rental market mirrors the broader trend in Cornwall, with a mix of options but with a tilt towards higher price points. There are currently 30 rental properties available, with 2 new listings added in the last fortnight. The average rent in Penryn is £2,214 pcm, reflecting a market skewed towards mid-to-upper-tier rentals.
There are no properties listed under £250 pcm or over £5,000 pcm, with just one property in the £250 to £500 pcm range, and two properties between £500 and £1,000 pcm. The majority of properties—11 in total—fall within the £1,000 to £2,000 pcm range, with 16 properties listed between £2,000 and £5,000 pcm.
Houses are the most common type of rental property in Penryn, with 21 houses available at an average rent of £2,410 pcm. Flats are also represented, with 8 available at an average rent of £1,921 pcm. The area has limited options for budget-conscious tenants, with only one room available to rent at £435 pcm.
Larger properties are particularly prominent in Penryn’s rental market. Four-bedroom homes account for the largest share, with 11 properties at an average rent of £2,548 pcm. Five-bedroom homes are also available, with 4 listings averaging £3,225 pcm. Smaller properties, such as three-bedroom and two-bedroom homes, are available at lower rents, with average prices of £1,901 pcm and £1,424 pcm, respectively. One-bedroom properties are less common, with just 2 listings averaging £1,087 pcm.
In summary, Penryn’s rental market features a significant proportion of larger, higher-priced properties, particularly houses with multiple bedrooms. While options for smaller or budget-conscious households exist, they are fewer in number. For landlords, the demand for properties in the £1,000 to £5,000 pcm range indicates a strong market for mid-to-upper-tier rentals.
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. Click here for the easiest way to contact us.
