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Spring 2024 UK Property Market Report: Green shoots

Posted on: Wednesday, March 13, 2024


Signs of green shoots are appearing in the property market. More buyers are returning to the market, supported by falling mortgage rates, wage growth outstripping inflation, and a strong labour market.

 

Economic backdrop

With the Bank of England holding the interest rate at 5.25%, the consensus is that we are at the top of the rate rise cycle. Interest rate expectations in the monthly consensus forecasts have been improving over recent months as the economic outlook brightens (HM Treasury Average of Independent Forecasts). Rates are predicted to start falling in the second half of the year, reaching 4.4% by the end of 2024. With inflation under control and forecast to fall to 2.2% by the end of the year (HM Treasury Average of Independent Forecasts), confidence in the housing market is improving.

 

First-time buyers

The average value of a first-time buyer purchase is 8% below the market average (Zoopla). Biding their time during 2023, more first-time buyers are expected to enter the market through the year, encouraged by the dual drivers of earnings growth and reduced mortgage rates improving affordability. The average two-year and five-year fixed-rate deals have now been falling for six consecutive months. The availability of deals at the 95% loan-to-value tier has increased to 274 deals, its highest level since 2022, demonstrating that lenders are still keen to support borrowers with smaller deposits (Moneyfacts).

 

Growing activity

The start of 2024 has seen an upswing of new buyers, with agreed sales in the first six weeks of 2024 16% higher than the same period last year and 3% higher than in 2019 (Rightmove). Average asking prices rose 0.1% year-on-year in February, the first annual increase since August 2023, an indication of growing market momentum. The number of mortgage approvals rose for the fourth consecutive month to 55,227 in January, the highest level since October 2022 (Bank of England). The Chancellor announced in the Spring Budget that property gains tax is to be reduced to 24%, which may encourage landlords to sell, boosting transactions.

 

Lettings

In the year to February, average rents across the UK rose by 7.4% to £1,262. Average rents increased by 0.2% January to February, with all regions seeing a monthly rise except for the South East, Yorkshire and the Humber, Wales, Northern Ireland and London (HomeLet). Rents are still forecast to rise in 2024, albeit at a slightly slower pace. A net balance of +41% of agents envisage rents rising over the next three months, as demand continues to outweigh supply (RICS). However, many landlords are keen to keep existing renters: 75% would maintain a rent level if they were happy with the existing renter, rather than take a new renter who would pay more (Dataloft, Property Academy Landlord Survey 2023). 

The Chancellor has also abolished the furnished holiday lettings tax regime, which should help to level up the buy-to-let sector and unlock more full-time tenancy stock in major cities, tourist hotspots and coastal communities.

 

Regional Reports

Browse our Regional Market Reports:

 

● Market Report 2024 Spring East Midlands 

● Market Report 2024 Spring Essex, Norfolk and Suffolk

● Market Report 2024 Spring Hertfordshire,Bedfordshire and Cambridgeshire

● Market Report 2024 Spring London

● Market Report 2024 Spring North East, and Yorkshire and The Humber

● Market Report 2024 Spring Northern Ireland

● Market Report 2024 Spring Scotland

● Market Report 2024 Spring Devon and Cornwall

● Market Report 2024 Spring Southern Home Counties

● Market Report 2024 Spring South East Home Counties

● Market Report 2024 Spring Southern

● Market Report 2024 Spring Thames Valley

● Market Report 2024 Spring West of England

● Market Report 2024 Spring West Midlands

● Market Report 2024 Spring North West

● Market Report 2024 Spring Wales

 

Contact us

Sell your property with your local expert this spring. Contact your local Guild Member today.

 

What Our
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I would highly recommend Hardings Estate Agents. They have excellent knowledge of Windsor and the surrounding areas, and are extremely professional, responsive and courteous. I would not hesitate to using them again the future. I recently dealt with Milica who was instrumental in securing us our new home in Windsor as well as the sale of our existing property. She was a fab negotiator and a real pleasure to work with from beginning to end. Thank you!

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Hardings of Windsor managed our purchase with complete professionalism and went over and above in my opinion to manage the transaction and chain, resulting in a really smooth purchase. Milica at Hardings constantly provided timely updates and managed respective solicitors and the chain effectively, always responding quickly to queries. The whole transaction would not have happened without Milicas' focus on making all parties comfortable and satisfying all queries, not only professional but a delightful and welcoming personal approach that was a constant throughout. Thanks Hardings! Thanks Milica!

Stuart Blatch

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I would recommend using Hardings estate agents when buying or selling your property. Dominic (Scully) was always available, helpful and genuinely interested in my purchase and always calm and compassionate. If I ever move again my first choice will be Hardings.

Cath Powell

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Dom and the team at Hardings were so helpful and efficient when I purchased my flat - friendly and professional service and kept us up-to-date the whole way through the process. It was my first time buying and so was very nervous but they helped me feel at ease.

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I used Hardings when I bought my property as well as when I sold it and the service has been fantastic both times. I very much recommend Hardings!

Therese Jouini

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We recently purchased our new home with Hardings Estate Agents. The whole team there were very helpful and flexible with us, arranging viewings quickly on the same day. They were always quick to respond and if ever our point of contact was not there, the service did not change as they work well together as a team. We received a personalised service, which allowed the sale to proceed quickly. Thank you all and we recommend Hardings Estate Agents without hesitation.

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What a pleasure it was to deal with Milica from Hardings. She sourced the perfect property for me and my family (while we were still abroad) and worked endlessly to put the deal together. I would give more than 5 stars if at all possible!

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How Much is Your Property Worth?

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