The UK property market has been growing strongly this year and looks set to finish 2024 in style. House prices are growing at their fastest rate since 2022, and the market as a whole has rapidly outpaced all the forecasts made at the end of last year.
The good news keeps coming, too. New data from Rightmove shows that the number of properties for sale is at a 10-year high right now.
Additionally, the number of sales agreed has increased by 29% and the number of enquiries to estate agents is up 17% year-on-year.
Tim Bannister, director of property science at Rightmove, said: “Sales activity has not only bounced back from the low of last year but has continued an upward trajectory.
“There is also a healthy level of underlying buyer demand as people continue to plan their next move.”
From the perspective of homebuyers and investors – including overseas investors – this news is a positive sign for the months and years ahead.
Growing confidence will lead to further house price growth
More market activity reflects a growing confidence in the market that is the foundation of house price growth. As more people see that this is a good time to buy, competition for homes will increase and property values will keep growing alongside them.
Rightmove also reports that many people are waiting for the government’s October Budget before deciding whether to go into the market – meaning that there is a large number of additional buyers who could add to demand before the end of 2024.
Tim Bannister said: “Some estate agents report that some movers are now waiting for budget clarity and anticipated cheaper mortgage rates later this year.
“Despite a budget-shaped cloud on the horizon, the big picture still looks positive for the market heading into 2025. Market activity remains strong, but affordability is still the biggest barrier facing many movers.”
Borrowing becoming more accessible
However, that affordability barrier is coming down. Following two years of uncertainty, the cost of borrowing is falling. The Bank of England recently reduced the base rate of interest and that had an instant effect on the property market.
If the Bank makes another cut to the base rate of interest in November or December as is widely expected, it is likely that mortgage costs will fall even further in 2025.
That will give another boost to the Q1 busy season and is sure to push house prices higher again. Long-term forecasts from the likes of Savills have already been increased for the next three years as it is clear we are at the start of a new property cycle.
Great time to buy UK property
All of that makes this a great time to buy UK property. Whether you want to buy a completed property or invest in off-plan property, you are likely to benefit from significant house price growth in the coming years.
Want to discover UK property for sale and buy at the start of a new property cycle? Contact our team today to learn more about the best UK property hotspots and our available opportunities.
