Market Update Summer 2024

The UK property market presents a mixed outlook for Summer 2024 influenced by various economic factors and recent policy changes.

Market Overview

1. House Prices: The UK property market has seen stability in prices with modest growth. In June 2024, the average price of newly listed properties remained steady, and forecasts suggest a 2.5% increase in value over the course of the year. This is supported by the recent cut in the Bank of England's base rate to 5%, which is expected to encourage more favorable mortgage deals and boost market activity​.

2. Mortgage Rates: Mortgage rates have seen a decline following the base rate cut, with the best rates hovering around 4.7%. This is anticipated to further decrease, making borrowing more affordable for buyers​.
   

Buying and Selling Trends

1. Buyers: The market has become more balanced, easing the intense competition previously seen. Potential buyers are advised to conduct thorough research, act quickly when finding suitable properties, and consider working with mortgage brokers to secure the best deals.

2. Sellers: Sellers are encouraged to adopt strategic pricing and focus on property presentation to attract serious buyers. The post-election period and summer months typically see a quieter market, but well-presented properties with realistic pricing can still perform well​.
   

Rental Market

The rental market continues to thrive despite easing rent inflation. Demand for rental properties remains high, with supply still lagging behind pre-pandemic levels. This high demand is driving rental prices up, though the rate of increase has slowed compared to the peak in 2022​.

Future Outlook

The property market's future largely depends on further changes in mortgage rates and the overall economic environment. Analysts predict a gradual improvement in market conditions as mortgage rates potentially fall below 4%, which could drive increased buyer activity in the latter part of the year. Other factors to consider:

1. Market Dip: The recent financial market dip, initially in the US and having a knock-on effect globally, could increase the likelihood of future interest rate cuts in the near future.

2. US Elections: The US election can influence the UK housing market through several indirect channels. Primarily via economic and financial linkages between the two countries, including but not limited to monetary policy, currency fluctuations and exchange rates.

3. Civil Unrest: Riots can have a significant impact on the property market, affecting primarily areas where trouble is seen. 

In summary, the UK property market continued to show signs of modest growth and increased stability, with favorable conditions for both buyers and sellers, although economic uncertainties remain a consideration.