Latest: October property market report

More rain, less daylight, kids back to school? It can only mean one thing. Autumn is here. September usually marks the start of a peak in the property calendar and 2024 proved no different.  

Early indications show that we’re about to experience one of the most active periods for some time. A Rightmove report released on 16th September found there had been a 15% increase in the number of movers making enquiries to agents last month, when compared to the same point in 2023. It wasn’t the only figure that had increased.  

Number of sales agreed surges

The portal says buyers were more determined to bag a new home this year when compared to last. Its analysis discovered the number of sales agreed in September 2024 was 27% greater than recorded in the same month of 2023. Also moving upwards was the average asking price, which increased by 0.8% - double the seasonal average.   

Mortgage optimism 

Rightmove alludes to a window of opportunity for movers, thanks to a number of favourable factors. In September, the Bank of England held the base rate at 5%, boosting optimism. Additionally, there is a period of calm before the Budget at the end of October.   

The mortgage news is also very positive. Bloomberg Intelligence’s new pricing study says swap rates – which heavily influences mortgage rates – are at favourable sub-4% levels. Additionally, it says competition in the mortgage market is set to intensify as lenders look to secure business. The byproduct is normally lower mortgage rates.  

While more affordable mortgage rates are most welcome, finding a deposit remains an issue for those taking their first step on the property ladder. The average asking price for a starter home has risen 1% in the last year, according to Rightmove. As a result, first-time buyers can expect to see one- and two-bedroom homes listed for an average of £227,570.  

This ties in nicely with new research released by Zoopla. It found almost two-thirds of first-time buyers since 2019 had received financial support from their families. This isn’t a shock as the portal says the average UK starter home deposit is £60,100.  

How much first-time buyers receive does, surprisingly, depend on their gender. While the Bank of Mum and Dad gave an overall average of £58,000, they gifted more to sons. Sons benefited from £65,000, while daughters received an average of £52,000.  

Persistently increasing rental values

With a renaissance in the sales market, was it a case of the same in rentals this September? The latest HomeLet Rental Index shed light on current values, finding that rents had increased by 1.3% in the last monitoring period. It says the average monthly UK rent is now £1,325.  

Shine taken off city rents

Zoopla’s latest Rental Index detailed just how the rental landscape is changing. Its latest report revealed rent value rises are beginning to taper in large cities, which have now reached their ceiling limit. The knock-on effect is rents rising in neighbouring markets.  

The portal says its ‘core cities’ rents have increased 5.8% over the last year. Conversely rent rises in non-city areas are running at an above-average rate of 6.8% - 7.4% a year. Star performers included Kilmarnock (+13%), Kirkcaldy (+12%), Wolverhampton (+12%) and Oldham (+11%).  

Underpinning the rental market is a note of caution. Labour’s Renters’ Rights Bill had its first reading in Parliament in September. Although the contents closely mirrored what was proposed in the Conservative’s Renters’ Reform Bill, there are differences and new additions. Contact us and we’ll be happy to explain what will be debated in the coming months.  

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