The UK housing market has emerged from the struggles of the last two years and returned to growth. Property prices and rents are both growing strongly as mortgage rates fall and confidence flows into the market once again.
Property prices rising
2023 was a tough year for house prices, but the market has turned around in 2024 and looks set to keep growing for a long time to come.
The Office for National Statistics has reported house price growth for the fourth consecutive month. Year-on-year growth of 2.7% in July is a massive difference to the average falls seen a year ago and shows how healthy the market is once more.
In the future, Savills predicts that the average house price will rise by more than 20% by the end of 2028.
This is in spite of the new government's target of building 370,000 new homes a year. The reality is that the shortfall of homes is so big - 4.3 millon according to Centre for Cities - that even such a high level of construction won't change the fundamental shortfall of homes in the market.
Is this a good time to buy property in the UK? Learn more here.
Rents following suit
Rental growth is equally positive. 2023 was a very positive year for investors thanks to more people than ever staying in the rental sector. High mortgage rates made buying more expensive and kept many more people renting.
That increased competition for homes and pushed rents to record highs. It also made void periods nonexistent in the busiest markets like Manchester city centre.
Now, rents are still rising as of July 2024. The Office for National Statistics reports that rents are rising 8.6% year-on-year. This is an annual high and close to the all time historic growth record.
There were questions about how high rents ould realistically go, but it seems that they have room to grow yet as the economy improves and wages go up.
All of the above makes 2024 a great time to invest in buy to let property. Contact our team today to find out more about the market and our available opportunities >>