As we enter the final quarter of 2024 it is fair to say that this has been a great year for the UK property market.
The year began with predictions from the likes of Halifax, Savills, Rightmove, Zoopla and others that the average house price would fall by up to 3%. Interest rates were high, borrowing was expensive and we were coming off a year where property had faced challenges unseen for a decade or more.
However, the negative predictions turned out to be false and UK property performed strongly once again.
The first half of 2024 proved to be a turning point for the market. The worst of the high mortgage rates and inflation began to pass and buying property became more affordable once more.
That trend was reinforced in August when the Bank of England dropped its base rate to 5% following seven successive holds at 5.25%. Lenders dropped their prices and it quickly became apparent that this was a great time to buy UK property.
Cheaper borrowing led to more market activity which fuelled a property bounce back. Most importantly, this increased competition for homes caused house prices to start increasing substantially over the course of August and September.
House prices growing at their fastest rate for two years
The latest news from Nationwide shows that this house price growth is here to stay. The building society confirms that house prices are rising – and rising fast.
The average UK house price is up 3.2% year-on-year in September, and overall house prices increased 0.7% in the month. That compares favourably to rates of 2.4% and -0.2% recorded in August.
It also means that property values are rising faster than at any point since November 2022 which is fantastic news for both homebuyers and property investors.
Furthermore, Robert Gardner, Chief Economist at Nationwide, confirms that some markets are performing even more strongly. He said: “Across England overall, prices were up 1.9% compared with Q3 2023.
“Northern England (comprising North, North West, Yorkshire & The Humber, East Midlands and West Midlands), continued to outperform southern England, with prices up 3.1% year-on-year. The North West was the best performing English region, with prices up 5.0% year-on-year.”
Q4 2024 the ideal time to buy UK property
All of that means that this is the perfect time to buy property in the UK. Firstly, because the market is clearly very healthy and at the beginning of another cycle of growth. That means you can expect significant capital appreciation in the years to come.
For example, Savills has revised its long term forecasts and predicted a total of 21.6% house price growth by the end of 2028.
Secondly, those who buy now will get the best deals and enjoy the highest possible return on investment. House prices are not only growing, but growing at a very fast pace.
If you buy in 12 or 18 months, you will miss out on all that growth and pay a higher price for your next property. On the other hand, if you buy off-plan property now you will benefit from that growth and pay a lower price for the same property.
That’s especially true if you look at properties for sale in Manchester or other booming regional markets.
UK property for sale is already a valuable commodity. The health of the market and the forecasts for the future indicate that its value will only increase in the coming months and years.
With the Bank of England expected to reduce interest rates again, borrowing is likely to become cheaper and house prices will receive even more of a boost.
Want to make sure you get ahead of the market and maximise your return on investment with UK property? Get in touch with our expert team today to discuss our available UK buy to let and property options.