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Summer 2024 UK Property Market Report: Building momentum

Posted on: Wednesday, June 12, 2024


The property market continues its steady recovery. As momentum builds, buyer demand, transaction levels and prices are rising. All eyes are on the Bank of England for an imminently expected interest rate cut. 

 

Interest rate 

The UK economy grew by 0.6% between January and March 2024, marking the end of the recession (ONS). With inflation falling to just 2.3% in the 12 months to April 2024, close to its 2% target (ONS), the Bank of England is widely anticipated to cut the base rate imminently.  Economists at Capital Economics are forecasting the base rate to be at 4.5% by the end of 2024, with the first cut expected in August. With the economic outlook brightening, consumer confidence in May rose to its highest level since December 2021 (GfK Consumer Confidence Tracker). 

 

 

Market dynamics

Despite borrowing costs being more expensive than the ultra-low period a few years ago, the recent stability has meant that homeowners can be confident in their ability to afford a mortgage and can benefit when rates do fall. With a widely expected base rate cut alongside the usual spring optimism, almost two-thirds of agents say that buyer confidence has improved compared to three months ago (Dataloft by PriceHubble (poll of subscribers)). Mortgage approvals reached 61,140 in April, a significant annual increase of 26% and only the second month since August 2022 that approvals have topped 61,000 (Bank of England). 

 

Election 

Rishi Sunak has announced a 4th July general election. Some fear an election could stall market activity, but this was typically when a significant policy change, such as Mansion tax, was mooted, which isn’t the case this time round. The first interest rate drop is expected to have a larger impact on activity this year. The election is unlikely to interrupt seasonal patterns of transactions, which typically peak in July and August anyway (Dataloft (PriceHubble), HMRC). With the sales pipeline already 3% higher than this time last year (Zoopla) it's unlikely that buyers already in the process of working to a sale will pull out. 

 

 

Lettings

Average rents rose by 1.6% to a new high of £1,294 per month in April, the highest monthly increase since August 2021. Year-on-year rents are up 7.9%, slightly moderated from the highs of 10%+ growth in summer 2023. Rental demand has declined by a fifth over the last year (Zoopla) as temporary pandemic effects fade away and renter affordability becomes increasingly stretched. Despite this, demand continues to outstrip supply and rents are forecast to grow, although at a slightly slower pace than the recent highs. As we move into the typically busier warmer months, 89% of agents report 6 or more applicants for each listing on the rental market, with a further 55% reporting 11 or more (Dataloft by PriceHubble (poll of subscribers)).

 

Regional Reports

Browse our Regional Market Reports:

 

● Market Report 2024 Summer East Midlands 

● Market Report 2024 Summer Essex, Norfolk and Suffolk

● Market Report 2024 Summer Hertfordshire,Bedfordshire and Cambridgeshire

● Market Report 2024 Summer London

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

● Market Report 2024 Summer Northern Ireland

● Market Report 2024 Summer Scotland

● Market Report 2024 Summer Devon and Cornwall

● Market Report 2024 Summer Southern Home Counties

● Market Report 2024 Summer South East Home Counties

● Market Report 2024 Summer Southern

● Market Report 2024 Summer Thames Valley

● Market Report 2024 Summer West of England

● Market Report 2024 Summer West Midlands

● Market Report 2024 Summer North West

● Market Report 2024 Summer Wales

 

Contact us

Sell your property with your local expert this summer. 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.

Freppell

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Natalie Quint

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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.

Mike B

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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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Thank you, Dominic and Louisa - having not moved for over 30 years you helped me all the way, step by step. You were always polite, communicative, reassuring and very supportive. Would recommend Hardings wholeheartedly.

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