An estate agent in York has shared his views on figures showing a fall in average house prices in the city and what is driving the latest trends.
Matthew Hendry, managing director of Naish Estate Agents, said more properties had come to market last year, with most of them from second home owners and investors looking to sell.
And he said an increase in rents pointed to landlords selling properties or hiking fees to cover the cost of new tenancy rules set for later this year.
It comes as Office for National Statistics (ONS) figures showed average York house prices dipped by 1.9 per cent, £6,000, to £304,000 in the year up to October.
Average prices across Yorkshire and the Humber rose from £200,000 to £206,000, 3.1 per cent, during the same period.
York house prices remained the highest in the region despite the fall.
Meanwhile, rents in the city rose by 3.9 per cent year-on-year as of November, from £1,103-a-month to £1,145, slightly below the regional rise of 4.1 per cent.
Mr Hendry told the Local Democracy Reporting Service (LDRS) buyer numbers held up last year but more homes were available as tax hikes and law changes drive sales.
He added figures for the rentals pointed to some desperation ahead of changes set to come into force in May under the Renters’ Rights Act.
The Government has said reforms including ending no-fault evictions, bidding wars and fixed contracts amounted to the biggest increase to tenants’ rights in a generation.
But Mr Hendry said while the reforms were motivated by good intentions, there would be consequences.
The estate agent, whose firm has offices in High Petergate, said: “We noted the properties being sold were typically between the £200,000-£700,000 price band, indicating the majority of them were second homes and investment properties.
“York has a high number of investment properties compared to other areas in the region.
“With many investment properties being sold, of course there were less available to rent.
“I don’t feel York prices are dropping. At Naish we recorded small increases over the year, its more likely that the values of the properties being sold we’re of a lower value.
“The sales market is stable and sustainable, buyers are actively viewing properties and buying at similar rates to the past two years.
“The rental market is also stable but there is some desperation there, and it’s going to become a lot harder to get an application approved with additional financial qualification and risk assessments.
“Due to the additional competition, this is not the type of market to risk testing prices.
“York has its own little bubble and will always be in high demand.
“Its not necessarily bullet proof but it will feel the effects a lot less than smaller towns or cities that are not as attractive for people to bring up children.
“This year has already kicked off with a bang, in similar fashion to 2025.
“I believe with falling interest rates and no upcoming budget, we will see a fairly active sales market.”
