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UK Property Market Maintains 2024 Momentum into June

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    UK Growth Flattens But Northern Regions are Performing Strongest

    According to Rightmove’s latest House Price Index, the positive momentum observed at the beginning of the year continues into the second quarter.

    House prices reached a record high in May, and this has been followed by the typical seasonal pattern seen in recent years, with growth flattening in June. The average price of a property on the market has dropped by £21 this month, which translates to a 0.0% change in percentage terms, making the current average now £375,110.

    However, this flattened growth is not representative of every UK region, as the less expensive northern regions are performing better this month than the more expensive areas such as East of England and London. For example, the North West recorded an annual growth of 1.8%, while the East England recorded a yearly dip of -1.4%.

    This has made northern regions more attractive for buy-to-let investment in the eyes of many investors looking for the best areas for buy-to-let.

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      High Mortgage Rates are Still Stretching Affordability

      When looking at the economic forces affecting the market, Rightmove states that high mortgage rates are likely to be a bigger driving force than the general election, and future buyers are paying more attention to when the Bank of England’s first rate cut may happen.

      The average 5-year fixed mortgage rate is now 5.04%, compared to 4.94% in January. While this is an improvement on the peak of 6.11% in July 2023, many still hope to see significant mortgage rate falls later this year.

      Tim Bannister, Rightmove’s Director of Property Science, commented: “It’s always difficult to predict how home-movers will react to sudden uncertainty, but looking back through our data, we can see that during previous election campaigns, market activity has remained largely steady. This election has followed a similar pattern so far, and the responses from our poll of over 14,000 people also support the data, with the vast majority of respondents saying they will carry on with their home-moving plans. However, some potential sellers appear to be watching and waiting rather than taking action, evidenced by a dip in the number of new sellers coming to market, particularly at the top-end. This is understandable when many of these sellers have more flexibility over when they act, but overall, it appears to be business as usual for the mass market.”

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      Is the General Election Announcement Having No Impact on the Market?

      The announcement of the upcoming election seems to have had little effect on the market, with most buyers and sellers continuing with their plans. Rightmove states that the only observable difference is a slight dip in the number of new sellers, especially at the top end of the market. In the two weeks since the announcement, the number of top-end sellers entering the market is 3% lower year-on-year, despite being 11% higher in the two weeks before the announcement.

      In the last month, the number of agreed sales has held steady at 6% higher than the year before. Buyer demand is also stable, recording a 5% increase over last year.

      A Rightmove poll of over 14,000 people found that 95% of those planning to move home aim to push forward despite the general election, and these new figures seem to support these findings.

      To find out more about the UK property market, have a look at our latest buy-to-let area guides covering topics such as investment property available in the City of Westminster and available investment property in High Wycombe.

      UK Property Market Maintains 2024 Momentum into June

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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.