Welcome to LL&Co’s Cornwall property market report for August 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 it’s happening here in Cornwall within the broader context.
What Happened to the UK Housing Market in August 2024?
In August 2024, the UK housing market exhibited a complex yet stabilising pattern amidst ongoing economic uncertainties. Data from prominent industry sources such as Rightmove and the Halifax House Price Index illustrate a mixed but cautiously optimistic landscape for property buyers and sellers.
House prices in the UK have shown incremental growth, driven by an uptick in buyer interest and a tightening supply of available properties. Rightmove’s latest report highlights a 2.5% increase in average asking prices compared to the previous month, reflecting a renewed confidence in the market, particularly in high-demand areas like London and the South East. The resurgence in demand is attributed to a stabilisation in mortgage rates and a seasonal boost in activity.
On the other hand, the Halifax House Price Index presents a more tempered view, noting that while house prices have risen by 1.8% year-on-year, the rate of growth has moderated compared to earlier in the year. The Index points out that regional disparities persist, with northern regions experiencing more robust growth compared to the southern parts of the country, where price increases are more subdued.
Despite these positive signs, the market remains cautious due to higher interest rates and economic pressures that continue to impact affordability. Both Rightmove and Halifax underscore that while buyer sentiment is improving, the overall pace of the market remains uneven, with some areas outperforming others.
What’s Been Happening in the UK Rental Market in August 2024?
This August, the UK rental market continues to see a steady rise in rental costs, with the average rent reaching £1,445 per month. This increase indicates that demand remains strong and supply is still limited. Rightmove reports a notable 7% rise in rents over the past year, highlighting ongoing pressure on rental prices in various parts of the country.
According to the National Residential Landlords Association (NRLA), the number of available rental properties remains tight, which is contributing to the competitive nature of the market. This shortage means that tenants need to act quickly to secure a rental, while landlords can capitalise on the higher rental yields.
Despite these positive developments for landlords, the market is not without its challenges. The limited supply and rising rents can make finding affordable housing difficult for many tenants. Both Rightmove and the NRLA underscore that while the market shows robust performance, the overall experience can vary widely depending on the region and specific circumstances.
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 August 2024?
This August, Cornwall’s housing market saw a notable rise in property prices. The average cost of a home has jumped to £305,000, reflecting a significant increase from recent months. Rightmove reports that prices in Cornwall have climbed by 5.6% over the past year, driven by strong demand and a competitive market.
Zoopla points out that while there’s a general upward trend, the increase in property prices isn’t uniform across the county. Coastal towns like St Ives and Falmouth are experiencing sharper price hikes compared to more rural areas. This regional variation shows how local demand and the popularity of certain spots are influencing the market.
Even with these encouraging signs, there are still challenges. The rise in prices highlights the ongoing demand for Cornish properties, but it also means the market remains competitive. Buyers might find it tougher to secure homes, while sellers can benefit from the current high demand. Overall, while Cornwall’s property market is on the up, the picture varies depending on where you’re looking and local market conditions.
What’s Been Happening in the Cornish Rental Market in August 2024?
This August, the rental market in Cornwall saw a significant rise in average rents. Data from Home.co.uk reveals that the average rent for properties in the area has climbed to £1,492 per month. This marks a noticeable increase from last month’s average of £1,276 pcm and is up from £1,314 pcm two months ago. This upward trend reflects the strong demand for rental properties across Cornwall.
While the overall picture is positive, there are some variations worth noting. The number of available rental properties has risen to 458, with 168 new listings popping up in the last 14 days. This is an increase from the 346 properties available last month, though it’s still slightly below the 384 and 388 listings seen in March and February respectively.
The breakdown of rents shows a diverse market. Most properties fall into the £1,000 to £2,000 pcm range, with 229 listings in this bracket. There are also 158 properties available between £500 and £1,000 pcm, and 51 properties priced between £2,000 and £5,000 pcm. The most expensive segment, with rents over £5,000 pcm, includes 10 properties, highlighting the range of options available.
When it comes to property types, flats are the priciest, averaging £1,834 pcm, while houses are slightly more affordable at £1,406 pcm. Rooms are the least expensive, averaging £614 pcm. The rent varies considerably by the number of bedrooms, with one-bedroom properties averaging £998 pcm, two-bedrooms at £1,121 pcm, and three-bedrooms at £1,522 pcm. Four-bedroom homes go for around £2,228 pcm, and five-bedroom properties average £2,347 pcm.
Overall, while Cornwall’s rental market is experiencing growth with rising rents and increased property listings, it remains a dynamic and varied landscape. The increased availability of new listings may offer more options, but the rising rents reflect ongoing strong demand and competitive market conditions.
Focus on the St Austell Rental Market
This August, the rental market in St Austell is showing a steady but modest pattern. According to recent data, there are currently 5 rental properties available in the area, with an average rent of £763 per month and a median rent of £650 pcm. This suggests a relatively stable rental environment with a focus on affordable options.
The range of rents in St Austell highlights a few key trends. Most of the available properties fall into the £500 to £1,000 pcm range, with 4 listings priced within this bracket. There’s also 1 property available in the £1,000 to £2,000 pcm range. Notably, there are no properties listed below £500 pcm or above £2,000 pcm, pointing to a market that is somewhat concentrated around these price points.
In terms of property types, flats are being offered at an average rent of £650 pcm, while rooms are slightly less at £595 pcm. Houses, on the other hand, are averaging £988 pcm. It’s worth noting that there are currently no listings for four or five-bedroom properties, which means options for larger households are limited.
Looking at the breakdown by number of bedrooms, one-bedroom properties are available for around £650 pcm, two-bedroom options are listed at an average of £775 pcm, and three-bedroom homes are priced at £1,200 pcm. The absence of larger properties indicates that the market is primarily catering to smaller rental needs.
Overall, while St Austell’s rental market in August remains steady, it does highlight some specific trends. With a focus on affordability and a limited range of property sizes, prospective tenants might find a stable but somewhat restricted selection. For landlords, the consistent demand within these price ranges suggests a reliable rental market, though with fewer high-end or larger property options available.
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.
