Positive Trends in the Property Market: August Updates

Mon, 12 Aug 2024 | Market update

August has brought positive news with the Bank of England's recent 0.25% base rate reduction, leading to most mortgage lenders offering 2-year fixed rates below 5%. This indicates a promising direction, with expectations that rates could settle between 3-4% by next year.

Market Reflections

July's Residential Lettings Market Surge

Reflecting on July, the residential lettings market saw a significant 57.6% increase in tenant registrations compared to June. This provides landlords with more options for selecting tenants. The high demand for rental properties during the summer months is a consistent trend, offering landlords a prime opportunity to find suitable tenants quickly.

Sales Market Activity

On the sales front, there was a 10% drop in registrations, attributed to the Euros, the election, and summer holidays. However, activity is expected to remain steady in August, with a registration surge anticipated in mid-September. The slight dip in activity during July is not uncommon given the distractions of major events and holiday periods.

Market Trends and Opportunities

Lettings Market Opportunities in 2024

In 2024, the lettings market has faced a shortage of available rental properties in the Home Counties, creating opportunities for property investors. With the increase in tenant registrations and the consistent demand for rental properties, investors can take advantage of the current market conditions to expand their portfolios. The ongoing demand highlights the potential for solid returns on rental investments.

Sales Market Confidence

Conversely, the sales market has shown more consistent figures compared to last year, with growing confidence due to favourable interest rate trends for lending. The recent base rate reduction by the Bank of England has positively influenced buyer sentiment, making mortgage rates more attractive and encouraging more people to consider purchasing properties.

Looking Ahead

Expectations for August and September

As we move through August, we anticipate steady activity in the property market. The initial lull in sales registrations due to summer distractions is expected to pick up again, with a notable surge in registrations likely in mid-September. This period often marks a return to focus for many potential buyers and sellers as the holiday season winds down.

Investor Insights

For investors, the current market dynamics present a unique opportunity. The shortage of rental properties combined with the high tenant demand offers a favourable environment for rental investments. On the sales side, the stability and growing confidence in the market, driven by lower interest rates, provide a solid foundation for property acquisitions.

August has brought promising developments for both the lettings and sales markets. The Bank of England's base rate reduction has set a positive tone, with lower mortgage rates enhancing buyer confidence. The significant increase in tenant registrations in July underscores the ongoing demand in the rental market, offering opportunities for landlords and investors alike. As we look forward to September, we expect continued activity and positive trends in the property market.

Stay tuned for our next update, where we will provide further insights into the housing market's activity, reflecting on the key summer month of August. For more detailed information or personalised advice, please contact one of our local offices. We are here to support you every step of the way.

If you’re considering selling, letting, or investing in property, now is the time to act. Contact us at Prospect Estate Agency to discuss how we can help you make the most of these market opportunities.