The UK property market continues to evolve, with significant developments affecting buyers, sellers, landlords, and tenants. August 2024 has brought a fresh wave of changes, driven in part by the recent reduction in the Bank of England's base rate. This latest property market update looks at the latest trends, and expert insights, offering an overview of what to expect in the coming months.
The UK property market is experiencing a period of moderation after several years of rapid growth. According to recent data from HM Land Registry, the average house price in the UK is currently just under £286,000, reflecting a 1.2% annual increase. While prices remain high, the pace of growth has decelerated slightly, signalling a more balanced market.
A key development this month is the Bank of England's decision to reduce the base rate to 5.00% (Bank of England - Monetary Policy Report). This move, is likely to have a significant impact on the property market. Lower interest rates generally make borrowing cheaper, which could encourage more buyers to enter the market and may provide some relief to those with variable-rate mortgages.
However, the impact of this rate cut may be tempered by the ongoing cost-of-living crisis. Inflation has eased and sits at the Bank's 2% target, but household budgets are still feeling some pressure. As such, the market may see a cautious response to the rate cut, with buyers weighing the benefits of lower mortgage rates against broader economic uncertainties.
For prospective buyers, the market presents a mixed outlook. On one hand, the reduction in the base rate will lower mortgage costs, making property more accessible, especially for first-time buyers. Additionally, the slowing rate of house price growth may create more opportunities to purchase at lower prices.
Buying Tips:
Shop Around for Mortgage Deals: With the base rate reduction, lenders may offer more competitive mortgage deals. It’s advisable to consult a mortgage broker who can help you find the best rates tailored to your financial situation. We recommend Private Finance, an independent mortgage broker established in 1999, who is well respected by mainstream institutions, private banks and other specialist providers.
Consider Fixed-Rate Mortgages: Given the current economic uncertainties, locking in a fixed-rate mortgage could provide stability in monthly payments, protecting you from potential future interest rate hikes.
Focus on Affordability: Ensure that your mortgage repayments are affordable even if your circumstances change. Lenders are increasingly stringent with affordability checks, so it’s wise to budget conservatively.
However, high living costs and tighter lending criteria continue to pose some challenges. Lenders have become more cautious, particularly in assessing affordability. The Bank of England's latest data shows that the average mortgage approval rate has dropped by 10% year-on-year, reflecting a more stringent lending environment.
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For sellers, August 2024 brings a need for realistic expectations. Zoopla reports that the average time to sell a property has increased to 60 days, up from 45 days a year ago.
Selling Tips:
Price Competitively: In a cooling market, pricing your property correctly is crucial. Overpricing can lead to your property sitting on the market for longer, which may deter potential buyers. Get a realistic valuation on your property - call us on 020 8660 2010.
Enhance Kerb Appeal: First impressions matter. Simple improvements like a fresh coat of paint, tidy landscaping, and minor repairs can significantly increase your home’s attractiveness to buyers. Click to learn how to prepare your home for viewings.
Stage Your Home: Consider professional home staging to make your property more appealing. Well-staged homes often sell faster and at a better price.
Be Flexible with Viewings: The more accessible your home is for viewings, the more potential buyers you can attract. Being flexible with scheduling can help attract offers faster.
Shinerocks offer a home staging service. For properties in Surrey requiring more than just a declutter and a lick of paint, Shinerocks works closely with Nicky Burrows, a talented interior designer who has dressed show homes for developers. Nicky’s expert home staging service is available on request, providing professional interior styling that can transform your home and make it irresistible to buyers.
Sellers are advised to price their properties competitively. With more properties available on the market, buyers have greater choice. It’s also important for sellers to be mindful of the condition of their homes; properties in good repair and presented well are more likely to attract serious offers.
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Stay Informed and be Prepared to Adapt
This is a period of transition for the UK property market. The reduction in the Bank of England’s base rate offers potential benefits, particularly for buyers, but it is set against a backdrop of economic uncertainty and regulatory changes. Whether you're buying or selling, staying informed and being prepared to adapt to these changes will be key to navigating this evolving market successfully.
Shinerocks are your local estate agents in Purley, Croydon & Surrey. We are delighted to bring you our property market updates each month. If you are thinking of buying or selling a property in Purley, Croydon & Surrey, please get in touch.
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Call us on 020 8660 2010 or email enquiries@shinerocks.co.uk to chat with a member of our friendly and experienced team.
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You can also call us on 020 8660 2010, or email enquiries@shinerocks.co.uk.
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