During June we’ve seen the UK property market continuing on its path of cautious optimism. While the fast growth seen in previous years has eased, a sense of stability is emerging, underpinned by rising buyer demand and a potential shift in interest rates.
Let's delve into the key trends shaping the UK property market this month.
The good news for buyers and sellers is that the property market is experiencing a steady recovery. After a period of uncertainty, house prices are showing signs of growth again. According to Nationwide Building Society, May 2024 saw a 0.4% increase in average house prices, bringing the annual growth rate to 1.3%. This indicates a market that's found its footing and is on an upward trajectory.
While the national picture is one of growth, it's important to remember that the UK property market is a patchwork of regional variations. England is seeing modest rises of 1% and 1.3% respectively. Understanding regional differences is crucial for both buyers and sellers when making informed decisions. If you would like to know more about the Purley, Croydon & Surrey region, please call us on 020 8660 2010 to discuss.
A significant factor influencing the market is the ongoing speculation around interest rates. With inflation falling closer to the Bank of England's 2% target, a potential base rate cut is on the horizon. However, The Bank of England last week made the decision to keep interest rates the same – at 5.25% meaning the rate has now remained static for the past 10 months. An interest rate drop could be a game-changer for the market, making mortgages more affordable and potentially boosting buyer demand. Some economists predict the first cut could come as early as August 2024, while others think we may have to wait until December! The impact of this on house prices remains to be seen, but it's likely to contribute to a more vibrant market.
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The upcoming general election in July has caused some to wonder if it will stall market activity. However, experts suggest this is unlikely to happen. In contrast to past elections with significant policy shifts, the current political landscape doesn't propose drastic changes impacting the housing market. The first interest rate cut, however, is expected to have a more significant impact on market activity this year.
The good news for buyers is that there are signs of a healthy increase in the number of properties coming onto the market. This increased supply is expected to keep house price inflation in check throughout the year. While significant price hikes might be off the table for now, the steady flow of properties ensures buyers have more options in a balanced market.
Buyers: With a potential interest rate cut on the horizon, affordability might improve in the coming months. However, with increased competition due to rising demand, it's still a seller's market in many areas. Being prepared with a well-researched offer and a strong financial position will be key to securing your dream property in Purley, Croydon & Surrey.
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Sellers: While significant price rises are less likely, the market conditions remain favourable for sellers. At Shinerocks we suggest focusing on presenting your property in its best light through minor improvements, home-staging and competitive pricing to attract buyers quickly in a market with more options. ShineRocks has rarely reduced an asking price in more than a year. We have a track record of selling houses for higher than the asking price! This is because we give accurate and realistic valuations. Generate a full report on your own property including an instant estimated valuation.
The UK property market is moving towards cautious optimism. House prices are showing signs of growth, with regional variations offering opportunities for both buyers and sellers. The potential for a base rate cut later this year could be a major driver of market activity. With an increased number of properties coming to the market, a sense of balance is emerging. Whether you're a buyer, seller, or landlord, staying informed and seeking expert advice will be crucial for navigating the market effectively.
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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