Welcome to LL&Co’s Cornwall property market report for October 2024. By keeping a close watch on the market trends for you, we want to ensure that you can make informed decisions, whether you’re renting, buying, or investing in Cornwall’s housing market.
First of all, let’s consider the UK market as a whole so we can see what’s happening here in Cornwall within the broader context.
What Happened to the UK Housing Market in October 2024?
In October 2024, the UK housing market demonstrated a moderate growth trajectory, with increased buyer activity despite ongoing economic uncertainties. Data from Nationwide indicates that annual house price growth reached 3.2%, marking the highest rate seen in over a year. This uplift in prices can largely be attributed to persistent demand from first-time buyers and a rising number of property listings, which have helped maintain a relatively balanced market.
Notably, regions in northern England and the Midlands experienced stronger price growth compared to the southern areas, where affordability constraints continue to pose challenges due to higher property prices. The recent decision by the Bank of England to maintain the base rate at 5.0% has provided some much-needed relief for prospective buyers, particularly those seeking fixed-rate mortgages, which have seen slight reductions.
However, there are nuances within the market. As Savills reports, anticipated tax changes in the forthcoming Autumn Budget have led some higher-end buyers to delay their purchases, resulting in noticeable declines in London’s prime property market. Conversely, the mid-market segment and first-time buyers have responded positively to the slightly lower mortgage rates, which is reflected in a steady rise in mortgage approvals in recent months.
Overall, while the UK housing market faces its share of challenges, the combination of easing mortgage rates and a steady sales pipeline suggests a period of stabilisation. However, it’s important to note that recovery paths are varying significantly across different regions, emphasising the need to stay informed about local market trends.
What’s Been Happening in the UK Rental Market in October 2024?
In October 2024, the UK rental market continued to see rising prices, driven by strong demand and limited availability, creating a highly competitive environment for tenants. According to Goodlord’s rental index, average monthly rents remained above £1,400 for the third month in a row, with September figures hitting £1,417—an increase of over 5% compared to the same time last year. Although this represents a slight dip from the peak in August, it underscores a trend of robust rental inflation, particularly as tenant demand continues to outstrip the available supply of properties.
Competition is especially fierce in major urban centres, where void periods—the gaps between tenancies—are shrinking rapidly. This trend places additional pressure on prospective renters, urging them to act quickly in securing homes. Regional disparities in rental prices are becoming increasingly apparent. HomeLet reports that average rental prices in Greater London rose by 2.2% in September, reaching £2,201, while other areas like the South East and Yorkshire also recorded upward trends. Regions such as the South West have seen year-on-year rental inflation soaring to 11%, significantly above the national average, reflecting heightened demand in these areas. In contrast, the North East has experienced more moderate rent increases, suggesting a degree of balancing within the national rental market.
For landlords, the sustained rise in rents presents a lucrative opportunity to achieve stronger returns, but it also raises concerns about affordability for tenants. Although recent data indicates that average renter incomes are beginning to catch up with rental inflation, many areas still see rents climbing faster than wages. Goodlord’s findings highlight this ongoing challenge, as pressure on tenant finances remains a pressing issue.
While there are signs that the market could be stabilising, the ongoing constraints on property availability mean that affordability continues to be stretched for many tenants as the year draws to a close.
Let’s look closer to home now and see what happened in the Cornish property market.
What’s Been Happening in the Cornish Property Market in October 2024?
In October 2024, the housing market in Cornwall continued to reflect a challenging affordability landscape, as local buyers face prices averaging over ten times the regional income level. With the typical house price at around £299,580, affordability issues persist, particularly for first-time buyers and young families trying to enter the market. Regency Living highlights that Cornwall remains among the South West’s more affordable areas, yet local income-to-house price ratios still make home ownership difficult for many Cornish residents. This dynamic has encouraged a significant number of retirees to consider downsizing options, with park homes emerging as a more accessible alternative, costing about £138,670 and offering a close-knit community appeal for over-50s buyers.
Despite slight stabilisation in prices, areas within Cornwall exhibit varied trends. While many parts of Cornwall have seen stagnation, or slight price decreases, the broader South West region has had sharper price increases, notably in neighbouring areas like East Devon. Recent months have seen price declines in regions like South Hams and Torridge, contrasting Cornwall’s flat or slightly reduced price trends. According to Property Daily, this slight downward shift in property values is a reversal from the “Race for Space” pattern seen post-lockdown, when Cornish and other coastal markets experienced heightened demand.
Overall, Cornwall’s property market remains robust, buoyed by consistent demand from second-home buyers and retirees. The possibility of capital gains tax adjustments, however, has led some second homeowners to consider selling. Analysts at Savills and Nationwide suggest that the outlook for Cornwall’s market could become even more complex as national policy changes and affordability pressures shape future buyer behaviour. The budget and possible shifts in taxation policy may influence the region’s affordability, making the market trajectory one to watch in the coming months.
What’s Been Happening in the Cornish Rental Market in October 2024?
In October 2024, the rental market in Cornwall continued to display strong activity, with a total of 672 properties currently available for rent. This figure includes 253 new listings that have emerged in the last two weeks, signalling a vibrant rental environment. The average rent for properties in Cornwall has been recorded at £1,340 per calendar month, indicating a competitive market landscape.
A closer look at the price distribution reveals that the majority of rental properties fall within the £1,000 to £2,000 pcm range, with 337 listings in this category. Meanwhile, 255 properties are available for rents between £500 and £1,000 pcm, showcasing a range of options for various budgets. There are fewer listings at the lower end of the spectrum, with just 10 properties renting between £250 and £500 pcm and 2 properties under £250 pcm. On the higher end, the market has 62 properties listed between £2,000 and £5,000 pcm, and 6 properties priced over £5,000 pcm, which reflects the ongoing demand for premium rental options in the region.
When examining rents by property type, houses are the most prevalent, with 451 available for rent at an average of £1,351 pcm. Flats follow closely, averaging £1,390 pcm across 178 listings. Rooms, while fewer in number at 19, command an average rent of £1,022 pcm, demonstrating the diverse options available to potential tenants.
The rental prices also vary significantly based on the number of bedrooms. One-bedroom properties average £946 pcm, while two-bedroom homes are listed at £1,165 pcm. For three-bedroom properties, the average rent rises to £1,391 pcm. Larger homes are also available, with four-bedroom properties averaging £1,867 pcm, and five-bedroom rentals commanding around £2,077 pcm.
Overall, the Cornwall rental market remains dynamic, characterised by rising average rents and an increasing number of available listings. This landscape reflects strong tenant demand amid a diverse array of properties, catering to various preferences and budgets. As the market continues to evolve, potential tenants can expect to find a range of options while navigating the competitive rental conditions in the region.
Focus on the Falmouth Rental Market
This October, the rental market in Falmouth is displaying a vibrant but competitive landscape. Current data shows there are 39 properties available for rent, with 9 new listings added in the past two weeks. The average rent across the market is pegged at £1,944 per calendar month, while the median rent is a more modest £1,500 pcm. This suggests a strong demand for rental properties, particularly in desirable areas.
When we delve into the specifics, it’s clear that the rental prices reveal some interesting trends. Notably, there are no listings below £250 pcm, and the lower price brackets seem largely vacant, with only 6 properties available in the £500 to £1,000 pcm range. A significant portion—22 properties—falls within the £1,000 to £2,000 pcm range, while 8 properties are listed between £2,000 and £5,000 pcm. Additionally, there are 3 high-end properties priced over £5,000 pcm, indicating a market that is skewed towards more expensive rentals.
Examining the rental prices by bedroom count provides further insights. One-bedroom properties average £1,183 pcm, with a median of £1,050 pcm, while two-bedroom homes come in at an average of £1,215 pcm and a median of £1,250 pcm. For families or those needing more space, three-bedroom homes average £1,730 pcm, with a median rent of £1,550 pcm. The market does include seven four-bedroom properties, averaging £2,778 pcm, which suggests a premium for larger accommodations. Interestingly, there are currently no five-bedroom homes available, highlighting a gap for larger households.
When it comes to property types, flats constitute a significant segment, with 19 available for rent at an average of £2,288 pcm and a median rent of £1,400 pcm. Houses also make up the same number of listings, averaging £1,629 pcm, which aligns closely with a median rent of £1,500 pcm. The absence of rooms for rent indicates that the focus remains on complete properties rather than shared living spaces.
Overall, the rental market in Falmouth this October reflects strong demand amid a competitive atmosphere, with higher rents and limited affordable options. Prospective tenants may find navigating this market challenging, particularly when seeking larger homes, while landlords can take advantage of the strong interest across various price ranges.
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.
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