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Your monthly property market update

24th June 2024

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With more stability in the political landscape and the want to build 300,000 homes a year, we will hopefully see an opening up of the planning system although I feel like there is a feeling of de ja vu. The 1st August is an important date for the property market with the hope that we might see an interest rate cut, although services inflation is still stubbornly high. If we do see a reduction, we could see a strong second half of the year with mortgage rates already on the way down in anticipation.

UK House Prices

Prices across the UK have continued to rise on a monthly and annual basis.

UK Indices

As always we always include all 4 indicators for the UK. Please remember that the UK HPI is the only index which looks at all transactions including cash buyers.

Key Housing Market Indicators

A solid performance in almost all sectors albeit at lower numbers but growing nevertheless.

UK Headlines

  • The bank rate has been left unchanged in June at 5.25%, with the next decision on1st August.
  • Monthly GDP is estimated to have grown by 0.4% in May 2024 after showing no growth in April 2024 (ONS).
  • CPI inflation rose by 2.0% in the 12 months to June 2024, the same rate as in May (ONS).
  • The average price for a property in May was £285,201, up 2.2% year-on-year, the strongest growth since March 2023 (ONS).
  • Half of all UK homes – around 15 million – have increased in value in the first half of 2024 by 1% or more (Zoopla).
  • The average asking price of property coming to the market fell by 0.4% (-£1,617) this month to £373,493, a bigger July drop than usual (Rightmove).
  • Transaction levels are increasing with the latest HMRC figures showing a 17% rise in May compared to a year earlier.
  • The number of sales being agreed is 15% above the same period a year ago, when mortgage rates were approaching their peak (Rightmove).
  • There were 59,991 mortgage approvals in May which is 19% higher than a year ago. In the first 5 months of this year there were 28% more approvals than a year ago (Bank of England).
  • The number of new sellers coming to market is a steady 3% above last year (Rightmove).
  • Average UK private rents increased by 8.6% in the 12 months to June (ONS, Price Index of Private Rents).
  • The average UK rent rose by 0.2% in June to £1,299, 5.7% higher than the same time last year (HomeLet).
  • Just over 240,000 new homes were built in the year to the end of Q1 2024. This represents an -8.4% fall quarter on quarter; however, completions rose 2.8% compared to the same quarter last year (MHCLG).
  • The year to March 2024 saw the fewest new housing sites consented than during any 12-month period since the data collection commenced in 2006 (Home Builders Federation).
  • Build to Rent completions are now running at over two and a half times the average for the period 2017-19 (BPF).

 

 

As always, if you have any questions, please contact your nearest Charters office.

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