Rightmove Property Update: Pinpoint Summary on the UK Property Market in 2024
As we move through 2024, the UK property market shows resilience and adaptability, reflecting broader economic trends. This month’s property update from Rightmove looks into the latest property market dynamics, providing valuable insights for home buyers. Whether you’re a first-time buyer or looking to upsize, understanding these trends can help you make informed decisions in a fluctuating market.
A Market Holding Steady: June’s Property Prices
The average property price in the UK saw a minimal change this June, decreasing by just £21 to £375,110 after hitting a record high in May. This stability is in line with the seasonal patterns observed in recent years. Despite political uncertainties, most buyers and sellers continue their plans, demonstrating confidence in the market’s resilience.
Regional Price Growth: The North Leads the Way
A closer look at regional trends reveals a more gradient picture. Less expensive and more northern regions are experiencing more robust price growth. Five of the six cheapest regions in the UK have reached new price records. In contrast, higher-priced areas like the East of England and London are seeing slower growth. This divergence underscores the importance of regional market dynamics in shaping property prices.
Election Impact: Minimal Disruption
Despite the surprise election announcement, the market remains largely undisturbed. Rightmove’s poll of over 14,000 people shows that the election does not deter 95% of those planning to move home. The number of sales agreed upon in the last four weeks is 6% higher than a year ago, indicating stable buyer demand. However, there is a slight dip in the number of new sellers, particularly at the top end of the market, which is often more discretionary.
Mortgage Rates: A Crucial Factor for Buyers
One of the most significant challenges for home buyers today is navigating the high mortgage rates. The average 5-year fixed mortgage rate has risen to 5.04% from 4.94% in January, stretching affordability for many potential buyers. With the Bank of England’s England’s rate decisions in sharp focus, future movers will likely keep a close eye on potential rate cuts rather than election promises.
Buyer Demand: Stability Amidst Uncertainty
Buyer demand has remained steady, now 5% higher than last year. This sustained interest supports the findings of Rightmove’s poll, indicating that political events have a limited impact on the housing market. Buyers continue to prioritise their housing needs, driving consistent activity in the market.
Top Tip for Home Buyers: Stay Informed and Flexible
Staying informed about regional trends and mortgage rate fluctuations is crucial for buying a home in this market. Flexibility in your buying approach can also provide an edge. Consider expanding your search to less expensive areas where price growth may be more robust, and stay updated on mortgage rate changes to seize the best deals.
FAQ: How Can I Navigate High Mortgage Rates?
Q: With rising mortgage rates, what strategies can home buyers use to manage affordability?
A:
- Fixed vs. Variable Rates: Evaluate whether a fixed-rate or variable-rate mortgage suits your financial situation. Fixed rates offer stability, while variable rates might provide initial savings if rates start to fall.
- Improve Your Credit Score: A higher credit score can qualify you for better mortgage rates. Ensure your credit report is accurate, and take steps to improve your score.
- Larger Deposit: Increasing your deposit can reduce the amount you need to borrow, potentially securing a lower interest rate.
- Consult with a Mortgage Broker: Mortgage brokers can provide access to exclusive deals and offer advice tailored to your financial circumstances.
Pinpoint Finance—Your Partner in Navigating the Housing Market
Navigating the UK property market in 2024 requires a blend of informed decision-making and some flexibility. At Pinpoint Finance, we are committed to simplifying the complexities of finance and finding the best solutions for our clients. Whether you’re a first-time buyer or looking to refinance, our expertise in residential mortgages can help you achieve your property goals. Contact us today to learn how we can help you secure your dream home.
