The UK property market is growing strongly once more following challenges over the past two years.
The Bank of England’s base rate cut has boosted the market and caused mortgage rates to begin falling once more. New data from Zoopla and Knight Frank also shows that market activity is picking up as a result – which is great news for investors.
UK property market activity reaches new high
Data from Zoopla shows that new listings for sale have gone up 14% year-on-year following the rate cut.
Buyers and sellers are returning to the market with renewed confidence as borrowing becomes more affordable once again. Overall, Zoopla expects that the number of new listings will be 10% higher by the end of 2024 than at the end of 2023.
However, it’s not just mortgage rates that are bringing people back to the market, it’s also growing wages. By the end of 2024, the government predicts that the average wage will be 3.6% higher than it was last year, and we are likely to see that reflected in housing market activity.
Richard Donnell, executive director of research at Zoopla, says: “Market conditions continue to improve as the outlook improves but buyers remain price sensitive. Rising disposable incomes are as important as mortgage rates for the future health of the sales market.”
Is this a good time to invest in UK property?
Increased market activity is having a clear positive effect on house prices – they are going up.
Zoopla’s index shows that the average UK house price has risen by 1.4% in the seven months to July 2024 and is on track to be 2.5% higher over 2024.
That equates to an average gain of more than £3,500 per property over 2024 to date, with more to come over the rest of the year.
Other price indexes agree, including those from both Halifax and Nationwide – two of the UK’s biggest high street lenders – which both show the average house price increasing by 2% in the year to date.
Is Autumn 2024 a good time to buy property in the UK?
Increased market activity and growing house prices suggest that Autumn 2024 is a good time to buy UK property.
Knight Frank updated its forecast for UK house prices to rise by 3% in 2024, up from an earlier estimate of a 4% drop. This follows the positive changes in the market and demonstrates the effect that increased confidence can have.
That goes alongside revised predictions from Savills that the good times will continue in the years to come. The agency now believes that the average UK house price will grow by 2.5% this year and a total of 21.6% by the end of 2028.
For investors, that means buying now can ensure you enter the market at the start of a cycle and get the highest possible return on investment as the market grows in the future. It’s also a more reliable long-term option than other investment types like stocks and shares.
Where is the best buy-to-let location in the UK in 2024?
The best UK buy-to-let locations are the busy city centre markets where populations are growing and there is a shortage of available housing.
All the benefits of increasing market confidence and activity will be magnified in places like Liverpool which saw both house prices and rents grow faster than the national average over the last year.
Manchester is another great example. The city’s population is expected to grow by 7,000 people each year, but only 11,700 homes are currently scheduled to be completed in the next three years. That is a recipe for both house price and rental growth that investors can make the most of by choosing Manchester buy-to-let property.
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