The UK property market continues to perform well as we reach the midpoint of Q2 2024. The uncertainty of last year is firmly in the past and we can look ahead to see a positive future for homebuyers and investors.
UK rents at record high
UK rents continue to grow as demand for property increases at a rate the supply of new homes cannot match, causing greater competition for the homes that are available.
The latest figures from the Office for National Statistics show that this situation has led to the average rent increasing by 9.2% year-on-year. This is the highest annual percentage change in the UK since records began in 2015 and puts the average monthly rent at £1,285 in England.
It is also a taste of what is to come over the next three years. New research from the Resolution Foundation projects further rental growth of 13% by the end of 2027 as the lack of supply of homes continues to push rents upwards.
The number of privately rented households in the UK has doubled since the mid-90s, and it is likely that percentage will be even higher by the end of this decade.
For those looking to buy UK investment property, this should be welcome news and give a strong degree of confidence.
This is especially true in the busiest markets where those looking to buy property in Manchester or Birmingham can expect even higher rates of rental growth based on current projections and rates of construction.
House prices stability continues
After a challenging year in 2023, the good news is that the house price market appears to be stabilising. In other words, indications are that the next cycle of growth may be round the corner.
Reports from Zoopla show that the housing market is seeing a sustained upturn in new sales which have gone up 12% year-on-year. The total number of sales agreed has been higher than last year for the last four months consecutively, and if trends continue the total number of sales in 2024 will be 10% higher than in 2023.
This recovery in sales is also reflected in mortgage data where approvals for new purchases have gone up by 32% month-on-month and are almost at pre-pandemic levels once again.
Altogether, this has led to house price inflation remaining relatively static – a big difference from the end of 2023 where the pace of growth was slowing.
For homebuyers and investors, this makes it a great time to buy off-plan property and get a below-market price now which will begin generating capital appreciation as property values start to go up again over the second half of 2024.
Want to learn more about where to buy investment property in 2024? Get in touch with our team today for expert advice.
