Latest property news in the UK: May 2024

Property market shows signs of stabilisation amid economic challenges

The property market is exhibiting signs of stabilisation following a period of significant volatility driven by economic uncertainties and rising interest rates. Recent data suggests a cautious optimism among buyers and sellers, as well as a notable increase in first-time buyer activity.

Market trends and price movements

House prices in the UK have seen a slight decline of 0.2% over the past year, bringing the average house price to £263,800. Despite this drop, market activity has improved, with a significant increase in the number of homes going under offer and mortgage approvals up by 32% compared to last year.

First-time buyers making a comeback

One of the most encouraging trends is the resurgence of first-time buyers. The number of first-time buyer mortgages approved in the first quarter of 2024 increased by 8% compared to the previous quarter. This uptick is partly attributed to government initiatives aimed at helping new buyers enter the market, such as the extended Help to Buy scheme and the introduction of new shared ownership models.

Impact of interest rates

The Bank of England’s decision to maintain the base interest rate at 4.5% has provided some relief to the housing market. Although this rate remains high compared to the historical lows of the past decade, it has helped to prevent further sharp increases in mortgage rates. Mortgage lenders have responded by offering more competitive fixed-rate deals, which has contributed to the slight uptick in property transactions.

Outlook for the remainder of 2024

Looking ahead, the UK property market is expected to remain relatively stable, barring any major economic shocks. Analysts predict a continued gradual increase in property prices, supported by steady demand and a stable supply of homes. However, the market will remain sensitive to changes in economic conditions, particularly inflation rates and wage growth.

In summary, while the property market faces ongoing challenges, there are clear signs of stabilisation and resilience. The increased activity among first-time buyers, and a robust rental market are positive indicators for the future.

For more updates on the UK property market, stay tuned to our monthly updates