October Market Update

Autumn arrived and so did the start of the seasonal home moving peak. Encouragingly, our team noticed a shift in enquiry levels across the board. Here are 11 things we learnt about the property market in September.  

1) The base rate was held: with inflation sticking at 2.2%, there was speculation around a base rate cut. Instead, the Bank of England held the rate at 5%, with a late autumn reduction looking more likely.   

Seasonal shifts arrived early

2) Autumn off to a great start: a new Rightmove report noted that buyers were back with a bang after summer. Activity has already surpassed 2023 levels, with a 15% increase in the number of people making enquiries to agents in September 2024, when compared to the same month last year.  

Asking prices trended upwards

3) Sellers more confident: Rightmove is arguably in the strongest position to comment on asking prices and September saw another increase. It says the average asking price of a UK property is £370,759, which is £3,000 more than in August and double the seasonal average.  

4) Mortgage market improved: good news continued in the mortgage market. The latest Bloomberg Intelligence’s pricing study said lower mortgage rates were due to sub-4% swap rates. It also says competition among lenders and a further forecast base rate cut should help keep mortgage rates attractive.  

5) Sons get sweet financial rewards: in September, Zoopla reported on how the Bank of Mum and Dad is currently operating. With the average UK first-time buyer deposit £60,100, parents unsurprisingly gave their offspring an average of £58,000 in financial assistance. The portal found sons received an average of £65,000, while daughters were given £52,000.  

6) Rent rises strengthened: Goodlord’s latest Rental Index showed rent rises gained momentum. The latest 1.3% increase was the biggest for three months. The UK’s average monthly rent is £1,325 - 5.1% more expensive than the same point in 2023.   

City limits reached?

7) Urban areas fall behind: Zoopla’s Rental Index concurred, finding rents were still rising. It did, however, note geographical differences. It said growth was limited in core cities, increasing 5.8% in the year to date. Conversely, neighbouring towns experienced rent rises of between 6.8% and 7.4%, with some rents increasing 13% annually.   

8) Demand remained high: tenants still needed to form an orderly queue when trying to secure a rental. Data from Rightmove showed there were 19 tenants chasing every property to let last month, with some stark regional variations. In Wrexham, each rental received 54 enquiries, while the figure was 52 in Glasgow and 51 in Bristol.  

9) Renters’ Rights Bill made public: Labour’s Renters’ Rights Bill had its first reading in Parliament. Much of the Bill is the same as the Conservative’s reforms but there are fresh proposals. These include new landlord possession grounds, a change to mandatory rent arrears grounds, a cap on the frequency of rent rises and an end to bidding wars between tenants.   

Energy efficiency back on the table

10) Landlords need to prepare for change: the Government confirmed its manifesto pledge to improve energy efficiency in the privately rented sector. It will now consult on proposals for all rented homes to achieve an EPC of C or equivalent by 2030. Currently, landlords need to have a mandatory EPC rating of E.  

11) New financial assistance announced: with rented homes expected to need major upgrades to achieve a C EPC rating, the Government has announced a new package of financial assistance. Low income tenants who privately rent can apply for a Warm Homes: Local Grant. They will, however, need the agreement of their landlord.  

If you would like to know more about your local property market, please get in touch.