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UK Property Market “Cautiously Optimistic” in Q1 2024

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    New Report Shows UK Property Market Looking More Positive Than 2023

    Property data insights and analysis continue to paint a more optimistic portrait of the 2024 UK property market.

    New figures indicate that supply and more affordable mortgage rates are strengthening the market in some respects. However, mortgage rates are still elevated compared to 2029, which is having a knock-on effect on demand. Still, demand is improving compared to the 2023 property market.

    Let’s look at the data in more detail with our safe investments in the property sector.

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      What Does Q1 2024 Look Like for the UK Property Market?

      Landmark’s recently published Q1 Residential Property Trends report reveals a cautiously optimistic UK property market. However, house prices and buyer and seller activity still react strongly to external factors like changing interest rates.

      The report indicates a positive trend in supply. Listings, on average, were 5% higher than in 2019 during Q1. This is better than previous quarters, which matched 2019 levels. This increased supply suggests a good start to 2024. It also hints that demand might rise in Q2 as more sellers transition into buyers.

      Despite the recent availability of less expensive mortgage options, limited affordability still hampers demand. The number of properties “Sold Subject to Contract” (SSTC) and completed transactions is around 40% lower than in 2019.

      The report shows a surge in high-valued mortgage applications at the beginning of Q1. January and February saw significantly more applications than last year (up by 20% and 15%, respectively).

      However, in March, there was a slowdown in applications due to lenders adjusting their rates. This decline was more significant than usual, indicating a reactive market.

      While buyers may be cautiously optimistic about the property market, tenant demand remains high. According to the latest Goodlord Rental Index, rents increased by more than 6% in March compared to last year. Additionally, Goodlord’s data shows that rent in March 2024 is a staggering 28% higher than in March 2020.

      With rental figures remaining substantial and house price growth stalling, 2024 offers buy-to-let investors the opportunity to find good-value properties with potentially high rental yields, mainly if they are cash buyers and not reliant on a mortgage.

      Find Out More: Check out our guides on creating a real estate business plan and how to buy multiple rental properties for more insights.

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      What Did Landmark Information Group Make of the Latest Q1 Report?

      CEO of Landmark Information Group, Simon Brown, said: “This quarter has seen a continuation of the green shoots of recovery we saw towards the end of last year, with stronger listings painting a positive picture for the summer.

      “Despite this cautious optimism, it’s clear that the market still needs stability, reacting more extremely to volatility in mortgage rates than we would typically see in a healthy market. If rates decrease – and then crucially, stabilise for a sustained period of time – there are clear indications that pent-up demand could start to flow through into the summer period.”

      If you’d like to learn more about buy-to-let investment properties across the UK, check out some of our area guides, including:

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      Dale Barham

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      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.