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Positive Signs Emerge in UK Housing Market Despite Rental Market Squeeze

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    Market Activity Recovering and Rental Growth Continues

    Savills’ June Residential Research Update gives a general picture of current property market trends to watch out for.

    Market activity seems to be recovering as data suggests positive indicators. According to TwentyCi, market activity in May was 16% higher than the previous year and up 21% in the over £1 million market. Zoopla has also reported an annual increase of 20% in stock levels.

    Data suggests that the rapid increases in tenant demand have slowed in the rental market, but there is still a sizable supply-demand imbalance. According to HomeLet, annual rental growth is at +6.9%. While this is down from +10% this time last year, growth in rental costs remains strong due to the lack of available supply. This is promising news for those investing in buy-to-let, and high rental income is one of the biggest reasons to invest in a buy-to-let in 2024.

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    General Election Won’t Largely Affect Property Market

    An upcoming election is often thought to greatly impact the property market, leading buyers and sellers to hesitate.

    However, according to this research from Savills, so many factors affect the market at any given time that it is hard to prove concretely that the General Election has had a big influence.

    In fact, 79% of participants in Savills’ Buyer and Seller Survey have stated that the election will have no impact at all on their decision to move in 2024.

    Overall, it seems that interest rates, and whether or not they decrease in the near future, will have a more significant impact on the property market for the rest of the year. Typically, a change in interest rates has a substantial effect on price movements and activity levels in the market.

    Further Reading: Learn more about buy-to-lets in Merseyside by viewing our properties, such as The Gateway Liverpool.

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      When Will the Bank of England Base Rate be Cut?

      Working on the assumption that the wider economic climate matters more than the upcoming polls, many investors will be wondering when the Bank of England base rate may be cut for the first time this year.

      The headline rate of inflation fell to 2.3% in April, and according to Savills, many economists are anticipating a cut in August.

      To learn more about the UK property market, have a look at some of our buy-to-let area guides, covering topics such as investment property available in High Wycombe and available investment property in Chesterfield.

      Positive Signs Emerge in UK Housing Market Despite Rental Market Squeeze

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      Jessica Ferris

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      Jessica Ferris is a property writer at RWinvest, helping our readers stay ahead of property market trends with the latest news and statistics.