Savills’ latest Housing Market Update, published this month, provides data and analysis on the current housing and rental market.
The report has shown that house prices fell by -0.4 % in April compared to last month, but annual growth is still in positive territory, standing at 0.6%. Savills states that these fluctuations are due to sensitivity to mortgage interest rates in the current market. While the rates lowered in January and February, there has been an uptick recently. However, rates are still below the mid-2023 peak, which has positively impacted buyer confidence. Savills forecast that this will increase further once there is greater clarity over the first base rate cut after consecutive holds.
Buyer demand has dipped, while supply has seen an uptick. In April’s RICS survey, the number of surveyors reporting higher demand decreased, while those who saw an increased supply have now reached the highest level since September 2020. This has somewhat eased the supply-demand imbalance, putting downward pressure on house prices. The annual change in house price growth still shows a strong north-south divide, with northern regions showing more resilience in the face of a challenging market.
Further Reading: Are you looking for tips on how to buy a buy-to-let property? Read about this and other topics such as stamp duty for buy-to-let property with our investment guides.
