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HouseWorth
© GetAgent Limited 2024
  1. Blog
  2. Property Market Update: July 2024
Property news
12 July 2024

Property Market Update: July 2024

Sam Edwards
Senior Writer & Researcher
GetAgent Market Update - July 2024

Table of contents

  1. 1. A new government
  2. 2. All eyes on the Bank of England
  3. 3. Looking ahead

Welcome to the July edition of the Property Market Report! We've collated information from experts from across the UK to provide you with a comprehensive view of the current market.

Northern England, Northern Ireland, Wales, and Scotland lead the United Kingdom in house price growth, significantly outpacing Southern England. Despite this, London remains the most expensive region for property, with average prices reaching £536,306, according to Halifax.

Nationwide reports that housing market activity has been flat this year with the total number of transactions down by 15% compared with 2019. Transactions involving a mortgage are down even more (25%).

As we enter the summer period, there are indications that the market is beginning to slow down, as is typical for this time of year.

A new government

The General Election appeared to have minimal impact on the market, causing only a slight dip in activity. Buyers in the initial stages of the buying process may have postponed major decisions until after polling day.

The new Labour government has made housing and planning a top priority in its manifesto. The new Chancellor the Exchequer, Rachel Reeves, confirmed on Monday the 8th of July that Labour intends to build 1.5 million homes in England over the course of this parliament.

This ambitious plan aims to address the long-standing housing crisis, with a focus on affordability and sustainability. The government has outlined several key strategies to achieve this target:

  • Updating the National Policy Planning Framework, restoring mandatory housing targets and prioritising the development of brownfield sites. Approval processes for urban brownfield developments will be fast-tracked. Reforms to compulsory purchase compensation rules aim to improve land assembly and speed up site delivery.
  • Working with local authorities to give first-time buyers the first chance to buy homes, addressing concerns about entire developments being sold to international investors before construction. Additionally, a permanent, comprehensive mortgage guarantee scheme will be introduced to support first-time buyers struggling to save for a large deposit, with lower mortgage costs.

The government's commitment to addressing the housing shortage is likely to be closely monitored by both market participants and the general public.

All eyes on the Bank of England

According to financial information service Moneyfacts, the average rate for a two-year fixed mortgage deal is currently 5.95%, while the average rate for a five-year deal is 5.53%.

High mortgage rates are significantly affecting housing affordability, with those nearing the end of their fixed-term deals facing limited buying options due to the increased rates.

The Bank of England’s base rate is expected to decrease in the coming months, potentially in August or September. Many buyers seeking immediate relief are eagerly anticipating this change.

Looking ahead

According to Zoopla’s latest house price index report, 75% of the 1.1 million sales projected for this year are either complete or in the sales pipeline. This is 10% higher than in 2023 (but below the 20 year average).

That means there are still 250,000 sales yet to be agreed that we can expect to complete by the end of 2024.

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