UK Property Market Shake-Up: Rising Demand, Price Changes, and What It Means for Your Next Move!

How are house prices trending in the UK this month?

In October 2024, the average asking price for UK homes rose slightly by 0.3% to £371,958. However, this increase is lower than the typical 1.3% rise expected during this period. Northern Ireland has shown the highest annual growth rate at 10.2%, while Scotland lags behind with only a 1.9% increase. Despite price growth in some areas, the overall trend shows a tempered rise in property prices compared to previous years.

Is there more activity in the property market?

Yes, market activity has indeed picked up. The supply of homes available for sale has increased by 12% year-over-year, marking the highest inventory levels per agent since 2014. Buyer inquiries have surged by 17%, showing strong interest and competition. However, the increase in supply means buyers now have more negotiation power, making this an interesting market for both buyers and sellers.

What’s happening with mortgage rates and affordability?

The Bank of England recently cut its base rate from 5% to 4.75%, a move aimed at easing mortgage costs. Although the average 5-year fixed mortgage rate has edged up slightly to 4.61% this past week, it remains below last year’s peak of over 6%. This improvement in rates has created a more accessible market for buyers, which is likely fueling the rise in buyer demand.

Are there any significant regional variations in the market?

Absolutely. London continues to have the highest property prices in the UK, with an average of £543,308. The North West region has experienced a solid annual increase of 5.9%, while Northern Ireland leads with a 10.2% gain. These variations highlight that while national trends offer insights, regional markets can differ significantly in terms of both price movement and buyer behavior.

What can we expect for the rest of 2024 and beyond?

Forecasts suggest a modest growth trajectory for the property market. Analysts predict a 3% rise for 2024, with potential for a 5% increase in 2025. Upcoming changes, such as an increased stamp duty on second homes from 3% to 5% starting in April 2025, could also influence the market. Buyers and investors might be prompted to act sooner to avoid this tax increase, which could lead to a rise in transactions in early 2025.

With increasing buyer interest, a growing number of homes on the market, and a slight improvement in mortgage affordability, the UK property market is balancing between recovery and caution. Whether you’re looking to buy, sell, or invest, staying informed about these shifting dynamics is key to making savvy decisions.

If you’re considering buying or selling a property in the Leicestershire area, or if you’d like a free valuation, don’t hesitate to get in touch with us at Hauseit. Our team is here to guide you every step of the way.