With the General Election now behind us, we have seen an increase in positivity and activity amongst those who want to buy and sell, let and rent.
A summary of the many and various reports produced every month on the market reveals:
Holding Firm: Despite high interest rates, confidence in the market is returning. The housing market is expected to gain further buoyancy after the general election settles the political climate. June saw a 0.2% rise in UK house prices, bringing the annual growth rate to 1.5% (up from May’s 1.3%). Recent revisions to house price forecasts indicate a more optimistic outlook for the year, with inflation reaching its 2.0% target in May and an imminent bank rate cut expected. Consensus forecasts suggest the bank rate will be 4.5% by the end of 2024, down from the current 5.25%. Any downward movement in interest rates will further increase confidence and activity levels.
Market Activity: Consumer confidence increased for the third consecutive month in June. The average time to sell reduced to 60 days, down from January’s high of 78 days. Mortgage approvals remained steady in May, with a 28% increase compared to last year. Transaction levels rose by 17% in May year-on-year. Agents across the UK report higher transaction levels, and near-term sales expectations point to modest volume increases over the next three months. The twelve-month outlook is even more upbeat, with a net balance of +43% anticipating an uplift in sales activity.
Market Momentum: Buyers and sellers proceeded with their plans despite the election. Sales agreed remained steady, 6% higher than a year ago. Buyer demand is stable and now 5% higher than last year. New sellers decreased slightly, particularly in the high-end market. However, overall market momentum remains positive.
In summary, the UK residential market shows signs of improvement, with house prices stabilising, transaction levels rising, and buyer confidence returning.
Locally, the market mirrors this position and we are seeing people move from “thinking about” to “actioning” their moving plans.
Sensible pricing remains key to generating interest but, excellent values are being achieved in both sales and lettings.
We may now be entering the main holiday period but the outlook for the second half of the year is positive.
Yours
Darren Murphy
