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Every summer brings a unique set of property conditions and July 2024 has been no different. While sporting tournaments, school holidays and the small matter of a General Election were predicted to sway home movers, what do the official statistics reveal?
Rightmove’s latest House Price Index highlights how serious home movers have not been put off by summer’s distractions. The number of sales being agreed is currently 15% above the same period last year. The number of new sellers coming to market is also above average - 3% up on 2024.
Interest rate cut the catalyst?
While summer activity has been steady, forecasts indicate demand is building as we head towards September. There was talk of some buyers and sellers waiting for the Bank of England to cut the interest rate before they entered the market. With the rate cut to 5% on 1st August, we’ll be monitoring enquiry levels with interest.
Sub-4% mortgages return
Mortgage lenders were among those forecasting an interest rate cut and many started to reduce mortgage rates in anticipation. High Street lenders, including Santander, HSBC, Nationwide and Barclays, have reduced the rates attached to some home loans. Positively, sub 4% mortgages are beginning to appear.
What will buyers expect to pay? The average UK house price is £265,600, according to Zoopla’s July House Price Index. Its analysis shows values are creeping up, rising £200 between May and June. On an annual basis, prices are up 0.1%.
Country-specific data from Principality Building Society shows house prices are performing well in Wales. The average price of a home here has risen to £236,369 in the second quarter of 2024. This is the first time prices have increased since December 2022. Land Registry data shows property prices in Scotland are 0.3% higher month-on-month.
In terms of best performing property types, Zoopla says small houses are increasing in value the most. Terraced and semi-detached dwellings have risen in cost by 0.7% annually, with detached houses and flats falling slightly back in value. Zoopla expects the average UK house price to rise 1.5% before the end of 2024.
Rental values continue to be another area we monitor closely. The latest figures from HomeLet show UK renters starting a new tenancy are paying more, with average rents rising by 0.2%. In monetary terms, tenants are now paying an average of £1,299 a month.
New records being set
Rightmove concurs with HomeLet. It says the average advertised rent outside of London has risen to a new quarterly record of £1,314 per month, with rents in the capital reaching a new high of £2,661.
The team at Goodlord found an even greater shift in rental values. Its figures found the average rent in England had broken the £1,400 per month barrier in the last reporting period. The average cost of a rental property in England is now £1,470 - up 7.5% year-on-year – says Goodlord.
Form a queue for available rentals
Rightmove also released a stunning figure relating to demand. It says 17 tenants are enquiring about every single property that is available to rent. The finding follows news from Propertymark, who say each of its members’ branches registered an average of 97 new tenants in May – its latest monitoring period.
As for future rental values, more rises could be on the cards. When it surveyed existing landlords, Landbay found 8% plan to raise rents between 11 and 19% in the next 12 months. More modest rent rises of between 6 and 10% were planned by 37% of participants, while 36% intend to implement a rental increase of up to 5%.
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