September Market Update

Summer lull? Not this year. The property market has been buzzing with buyers and news of a base rate reduction. Here are 11 things we learnt about the property market in August. 

1) The base rate was reduced: August was the month the Bank of England decided to take action. It reduced the base rate from 5.25% to 5%. This was the first cut in four years  

Home movers mobilised

2) Increased activity noted: Rightmove noticed a spike in demand straight after the Bank’s announcement. For context, buyer demand was up 11% year-on-year for July. After the rate cut, buyer demand jumped 19% compared to the same time in 2023.  

All set for a busy autumn

3) Buyers are back: Zoopla’s latest House Price Index concurred with Rightmove. It found demand for homes is a fifth higher now, compared to this time last year. Additionally, it says new sales agreed are almost a quarter higher.  

4) House prices still rising: Zoopla also reported that over the first 7 months of 2024, prices have risen by 1.4%. The UK’s new average is £266,400. Between June and July 2024, all property types rose in value, costing an average of £775 more.  

5) The secret to a speedy sale revealed: Zoopla also said homes where there was no need for a price reduction sold in 28 days. On the flipside, homes where the vendor had to slash the asking price by 5% or more took 73 days to sell. For reference, the portal found 1 in 5 homes had their asking price cut by 5% or more.  

6) Rent rises are pegged back: August also saw the publication of Zoopla’s latest rental index. The UK’s average monthly rent is now £1,232, with 17 tenants chasing every property. Rental values are on course for a 3-4% rise by the end of 2024 (compared to 8% and 11% in the previous two years).    

Labour starts tinkering with short lets 

7) Proposals taking shape: the Government wants to address the shortage of rental properties by making it harder to operate short-term holiday lets. Having noted schemes in Wales and Scotland, Labour is considering reforms. On the table are greater powers for local authorities to refuse planning consent to turn main residences into short lets. A mandatory short-term lets national register and a short let licensing scheme are also possibilities.  

8) Outdated features identified: 2,000 people were recently questioned to establish what makes a home feel outdated. Aesthetics elements that may deter buyers include net curtains, pebble dash, shag pile carpets, lace tablecloths, floral patterns and wood chip wallpaper.   

9) Include these modern elements: the same survey also asked people to name today’s modern must-haves. Among the top 20 were a hot water tap, a kitchen island and a home office. Energy efficiency also mattered with an EV charging point, solar panels, triple glazed windows, high levels of insulation and a smart energy metre all making the modern cut.   Brands add value 

10) Right shops? Right price: while the ‘Waitrose effect’ is a well-documented phenomenon, other brands have muscled in on the desirability list. The Daily Mail’s anecdotal research found a host of other brands can help increase a home’s value if they’re close by. Branches of M&S, Aldi, Gail’s, Space NK, L’Occitane, The Pig, Third Space and Waterstones can all have a positive effect on house prices.  

11) Stresses of moving home revealed: when Go Compare questioned 2,000 people on how they found the moving experience, 58% had forgotten to update their address when moving from one home to another. In addition, 26% misplaced an item, 16% forgot to label boxes, 15% didn’t allow enough time to load or unload belongings and 14% dropped a possession causing it to break.   

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