UK Housing Market: Essential Insights for Property Investors

The UK housing market faces a pivotal moment in 2024, marked by significant changes that are shaping both buying and selling dynamics. As we progress through the year, it’s essential to grasp the latest trends and statistics to make informed decisions. In this blog, we delve into the trends in the UK property market, UK house prices and highlight insights from key sources like the Office for National Statistics, Purplebricks, and Hometrack, and discuss how Rothmore Property can help you navigate this evolving landscape, especially if you're considering property investment.

Key Takeaways

• Minimal House Price Growth: UK house prices have only increased by 0.1% over the last 12 months, with a modest 2% growth projected for the full year.
• Rising Stock of Homes: The number of homes for sale has surged by 16% compared to a year ago, with estate agents now averaging 33 properties per listing.
• Increased Market Activity: Despite the rise in mortgage rates, market activity has picked up, with more homes being listed and more sales being agreed upon.
• Increased Buyer Confidence: Buyers are now paying 96.8% of the asking price, up from 95.4% in late 2023, indicating stronger market sentiment.

UK Housing Market Overview: Stability Amidst Change

In 2024, the UK housing market shows stability, with house prices increasing by just 0.1% over the past year. Although this growth is minimal, it indicates a recovery from the price drops seen in 2023. As the year progresses, house prices are expected to rise by up to 2%, fueled by increased market activity and a growing supply of homes.

This stability comes despite rising mortgage rates, which have now surpassed 4%. These higher rates have impacted buyer affordability, particularly in southern England, where price growth has been slower or even negative. However, the market is proving resilient, with more homes being listed for sale and buyers returning to the market with renewed confidence.

The Growing Supply of Homes for Sale

In 2024, a notable shift in the housing market is the 16% increase in the stock of homes for sale compared to the previous year. This surge in supply is giving buyers more options, which is crucial in a market where affordability is a significant concern. On average, estate agents now have 33 homes available, far surpassing the long-term average of 25.

Several factors are driving this increase in supply. Higher mortgage rates have encouraged more sellers to list their homes, aiming to capitalise on the relatively stable prices. Additionally, over 10% of homes currently on the market were previously rental properties. This shift reflects a broader change in the rental market, as landlords adjust to new tax regulations and increased operating costs.

Regional Variations

The UK housing market displays significant regional variations in price growth. Northern Ireland leads with a strong 3.9% annual increase in house prices, followed closely by regions such as Manchester and Liverpool, which also report positive growth.

In contrast, southern regions like London, Oxford, and Aberdeen are experiencing either flat or declining prices. London has seen a slight annual decrease of 0.3%, while Aberdeen has faced the most significant drop at 2.2%. These disparities underscore how higher mortgage rates and local economic conditions impact different housing markets across the UK.

Buyer Confidence Rebounds

Despite the challenges of higher mortgage rates, buyer confidence is increasing. By June 2024, buyers were paying an average of 96.8% of the asking price, up from 95.4% in November 2023. This improvement is especially notable in London and the South East, where buyers are now paying 96.3% of the asking price, compared to less than 95% last year.

This trend shows that, although affordability remains a concern, particularly in southern England, the market is becoming more balanced. The increased supply of homes is offering buyers more options, while sellers are more open to negotiation, leading to a healthier and more dynamic market overall.

How Rothmore Property Can Help You Navigate the Market

In a market as complex and varied as the UK’s, having expert guidance is essential.Rothmore Propertyspecialises in helping clients find the ideal property or investment in key UK locations. Whether you’re looking for a home in a rapidly growing area like Liverpool or seeking value in a more stable market like Manchester, our team has the local knowledge and market insight to help you make the right decision.

We understand the nuances of regional markets and can provide you with tailored guidance to maximise your property investment. With our extensive network and commitment to client success, Rothmore Property is your trusted partner in navigating the UK housing market.

Conclusion

The UK housing market in 2024 presents both challenges and opportunities. While house prices remain stable, regional disparities and rising mortgage rates are creating a varied landscape that requires careful navigation. By staying informed of the latest trends and working with experienced professionals like Rothmore Property, you can make confident decisions that align with your goals.