Skip to content

More Buyers & Housing Stock Entering the Property Market

Don't miss out on the best new investment deals. Enter your details now to sign up to our mailing list and receive exclusive information straight to your inbox.

    Renewed Activity Among Buyers Following Stock Increases in the UK Property Market

    2023 was a year marked by low activity in the property market. However, despite elevated caution due to high inflation and mortgage rates, house and rental prices remained remarkably resilient. The Halifax House Price Index showed that property prices grew by 3% in 2023 when many forecasters predicted falls up to double-digit percentages.

    2024 is much more optimistic, particularly concerning buyer activity and stock levels. With mortgage rates becoming more affordable, inflation falling to 4% and interest rates maintaining at 5.25%, more people are investing in property and willing to take a chance on the market.

    Let’s look at this data in more detail and deeply dive into the buy-to-let market regarding good investment potential for UK buy-to-let investors.

    Only £30,000 Deposit Required

    15% deposit secured for next 10 units only!

      Blackburn street view

      How Many Investors Are Buying Property in 2024?

      According to the London estate agency Chestertons, the UK property market has seen a significant 21% increase in the number of people submitting offers to purchase properties, perhaps encouraged by the current market sentiment.

      With mortgages falling for two- and five-year fixed terms, it seems many investors are willing to take a chance on current mortgage prices, particularly with rental growth increasing by 9% in 2023 and expected to rise by a further 6% in 2024.

      Chestertons’ data compares January 2024 with the preceding year, showcasing a significant rise in stock. According to their figures, 17% more properties will be available in the market in January 2024, while 7% more property owners will request market appraisals. This suggests that people are optimistic enough to resume their strategies to move home.

      Chestertons Head of Sales, Matt Thompson, says: “The boost in buyer activity is exactly what many sellers have been waiting for.

      “Buyers have become increasingly confident since December, when interest rates were held at 5.25% and mortgage rates started to come down. This sentiment carried through to January, and with more properties now on the market, we expect to see increasing numbers of buyers, additionally driven by pent-up demand from those who did not feel comfortable moving forward with their search last year.

      “We are seeing all types of buyers now entering the market, including first-time buyers, young couples joining forces to achieve a joint upgrade and people that live outside of the capital and require a pied-à-terre to avoid lengthy daily commutes.”

      Read More: If you’re looking for a property investment guide, check out our article on how to make money on buy-to-let.

      Completed, Furnished 2-Bed Apartment in Prime L1

      We are now welcoming offers on this city centre property in a previously sold-out development. Get in touch and get your offer in.

      What Areas Could Be Good for Property Investment?

      If you are one of the many investors considering getting into the market, you may want to pay attention to current forecasts to hone the best UK property investment strategy.

      For example, investors may want to focus their strategy on city centre apartments. A Shawbrook Bank study showed that landlords see these types of properties as a lucrative investment as more people look to live closer to the office now hybrid and remote work is less favoured.

      In addition, Savills also highlights the North West buy-to-let market as a potentially lucrative option, forecasting a 9.2% return rate for the region.

      While there are no low-risk investments in the UK, it is essential to follow forecasts like this to ensure you give yourself the best chance of thriving in the property market.

      Explore further into the UK buy-to-let market with our detailed buy-to-let area guides:

      Avatar photo

      Dale Barham

      LinkedIn Logo

      Dale is a property content writer at RWinvest. Keeping a close eye on the UK property market, Dale helps our readers stay informed and up to date on the latest market news and statistics.