The UK property market continues to adjust to economic pressures, with mortgage rates dropping to their lowest levels in 15 months, boosting sales and stabilising house prices. According to the latest House Price Index from Zoopla, modest price growth and increased buyer activity are expected to continue as we approach the end of the year.

Key Market Takeaways:

  • Mortgage rates: The average mortgage rate for a new 5-year 75% LTV loan stands at 4.3%, down from 5.5% a year ago. This drop has revitalised the market, with many buyers returning to take advantage of these more attractive rates​.
  • Sales and Demand: Buyer demand and sales agreed are up by 25% compared to 2023. This surge is driven by a more stable lending environment and increased confidence among buyers​.
  • Average house prices: The average UK house price is now £267,100, reflecting a 0.7% year-on-year rise. Affordable areas, such as those in the North of England, have seen house prices rise by as much as 2.5%​.

Regional Differences

The UK market remains divided in terms of regional performance. Coastal and rural areas, including places like Exeter and Lincoln, have seen a significant increase in the number of homes for sale, up by 40% in some cases. These increases are partially driven by sellers looking to capitalise on changing tax policies.​

While regions in the North East and East Midlands have seen sales activity surge by over 30%, London continues to recover more slowly. House prices in London are up by 0.5% year-on-year after experiencing a decline in 2023​.

Buyer Sentiment and Price Sensitivity

Although more homes are coming onto the market, buyers remain price-sensitive. Nearly a third of homes currently for sale are ‘chain-free’, largely due to investors and second-home owners selling off properties to mitigate potential tax liabilities​. Moreover, 37% of sales are agreed at more than 5% below the original asking price, highlighting the competitive nature of the current market.

Property Type Breakdown:

  • Detached houses: £451,600, a 0.3% increase year-on-year.
  • Flats: £191,500, largely unchanged.
  • Semi-detached houses: £273,200, a 1% rise.
  • Terraced houses: £235,800, a 1.4% increase​.

Housing Market Outlook for 2025

Looking ahead, the housing market is expected to maintain its current trajectory of modest price growth. Increased supply of homes for sale, stabilising mortgage rates, and rising household incomes will continue to support the recovery in sales and price inflation. Mortgage rates are expected to settle between 3.5% and 4% by 2025​.

uk housing market

Why Choose Doree Bonner for Your Property Move?

With the property market seeing renewed activity, many buyers and sellers are looking for professional, efficient moving services to navigate the process smoothly. Doree Bonner International offers a full suite of services tailored to meet your needs:

  1. Comprehensive Moving Solutions: Doree Bonner provides professional packing services that ensure your belongings are safe during transit. Whether you are moving to a new city or relocating your office, our team can handle every step.
  2. Secure Storage Options: If your new home isn’t ready yet or if you need temporary space, take advantage of our secure storage facilities. We offer flexible, containerised storage options to keep your valuables safe​.
  3. Accreditations: As a BAR-registered company, Doree Bonner meets the highest standards of service, ensuring peace of mind throughout your move. We are also proud to be ISO-accredited, demonstrating our commitment to quality and environmental responsibility.
  4. Nationwide Coverage: Whether you’re moving in the UK or moving internationally, Doree Bonner has a broad network that allows us to manage moves seamlessly wherever you are​.

See what our clients have to say about us by viewing our testimonials.

Get a free online quote today to find out more about how Doree Bonner can help with your next move, or contact us 24/7 to discuss your packing, moving and storage needs.

Sources:

Zoopla House Price Index Oct 2024

Hamptons Market Update