The UK property market showed signs of growth in July, with house prices increasing by 0.3%, leading to an annual growth rate of 2.1%, according to Nationwide. This is the strongest annual growth observed since December 2022, following three consecutive months of steady price rises. Despite this positive trend, property values remain around 2.8% lower than their peak in the summer of 2022.
Mortgage approvals have played a crucial role in this market activity. Over the past four months, mortgage approvals have remained steady, with June 2024 figures up by 12% compared to June 2023, even amid high-interest rates. This consistency indicates growing confidence among both buyers and lenders in the current market.
After the General Election, there has been a noticeable uptick in market activity. New property listings in July were 7% higher compared to the 2017-2019 average, and sales agreed rose by 10%, according to TwentyCi. This improvement follows a quieter market in June. The Bank of England’s recent decision to cut the base rate by 0.25% on 1st August, the first since the pandemic began, is expected to further support market growth. Lenders have reduced rates on various mortgage products, including some that have dropped below the 4% mark, potentially helping to bring mortgage approvals back toward pre-pandemic levels.
However, the Bank of England has expressed caution about future rate cuts. With inflation predicted to rise later this year due to increased energy costs, the pace of interest rate reductions may slow, which could affect the speed of the market’s recovery and impact house price growth.
If you are considering your next property move in this evolving market, the Daniel Madden and Partners team are ready to provide expert advice tailored to your needs. Contact us today to discuss the current opportunities in the property market.
Key Metrics for The Whole Market in Acton
versus last month versus 6 month ave
New properties to market Up 128% Down 2%
Properties sold subject to contract Down 11% Down 6%
Properties reducing their asking price Up 107% Up 108%