August is traditionally the month for holidays but the property market didn’t take a break. Action from the Bank of England (BoE) and changing mortgage rates both had an impact on moving activity. In fact, high summer was a period of high interest among home movers.
Buyer demand surged in August, according to Rightmove. Buoyed by a 0.25% interest rate cut and some mortgage rates below 4%, potential purchasers flooded the portal. The figures show how easily confidence can grow.
Base rate down, buyer demand up
Rightmove was already noticing heightened activity, with buyer demand up 11% in July 2024, when compared to July 2023. When the BoE cut the base rate from 5.25% to 5% in August, analysts looked closely at enquiry levels. The rate reduction prompted a 19% jump in buyer demand, compared to the same point in 2023.
House prices inch up
It will be interesting to see how demand translates to future house price fluctuations but for now, we know values continue creeping upwards. Zoopla’s latest House Price Index showed the UK’s average house price was £265,600 in June 2024, increasing to £266,400 in July. Cumulatively, the average value has increased by 1.4% over the first 7 months of 2024.
Zoopla also analysed the current speed of sales. There are strong take-aways for those hoping to move. The portal found homes where the vendor wasn’t required to reduce the asking price sold in 28 days. Sales where the asking price was reduced by 5% or more took 73 days to sell.
If you are planning to sell, you might be interested in the results of a new survey among 2,000 people. It identified aspects that make a home feel old fashioned. The list is, however, completely subjective so don’t panic if any of the following are in your home.
A property in the right location – and at the right price - will always sell but the following may be of interest. Among the 20 features Daikin UK found to be outdated were wood chip wallpaper, single glazing and net curtains. Also on the list were floral patterns, shag-pile carpets, pebble dash, word art and frosted glass.
The ‘Waitrose effect’ widens
While a home’s internal contents can be changed to appeal to a more modern buying audience, some aspects are beyond our control. These include what shops and facilities are close by. Many believe having the right brands in the neighbourhood can increase a home’s value.
You may already know about the ‘Waitrose effect’, with homes near this supermarket chain worth more than others further away. Now, the Daily Mail has reported on other stores that, if in your area, may help inflate your home’s worth. Here’s who has joined Waitrose on the high-value list.
Homeowners should look out for an M&S or even a Booths if they live in the North. Hotels and restaurants also hold appeal, with branches of The Ivy and Gail’s elevating an area’s status. A round of applause should also be given if Space NK, L’Occitane or Waterstones opens up in your neighbourhood.
Rental heat fades with summer
While amenities will also be important to renters, of a more immediate concern are rental values. Although Zoopla says 17 people are still chasing every home for rent, values have risen by just 1.6% in the last six months. This is the lowest increase since 2021.
For now, the UK’s average rent is £1,232 per month. It is a figure that is expected to trickle upwards. The portal says it expects UK rents to rise by 3-4% by the end of 2024. For comparison, the increase was 8% in 2023 and 11% in 2022.
If you would like to know more about your local property market, please get in touch.
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