What's happening in the property market this November?

Strong Sales, Rising Prices, and Shifting Rental Dynamics

One month into the final quarter of the year, and the UK property market remains resilient with strong activity levels and rising house prices on both a monthly and annual basis. A key driver behind this growth is improved affordability, as competitive lenders introduce more mortgage products that lower the cost of borrowing.

At Chase Evans, sales activity has remained steady, with an increase in offers and completed transactions. Notably, new sales instructions are significantly higher than during the same period last year, highlighting sustained confidence among sellers.

House Prices and Market Activity

The latest data from Rightmove’s House Price Index (October 2024) reflects a buoyant market. The number of homes for sale has increased by 12% compared to last year, reaching its highest level per estate agent since 2014. The average asking price for new sellers in the UK saw a modest rise of 0.3% (+£1,199), bringing it to £371,958. Meanwhile, London’s property market outperformed the national trend, with average asking prices increasing by 1.8% to £694,906.

The overall supply of properties for sale across Britain hit a 10-year high in October, with the number of agreed sales up by an impressive 29% year-on-year.

Nationwide House Price Insights

The Office for National Statistics (ONS) reports that the average UK house price rose by 2.8% to £293,000 in the 12 months leading up to August 2024, marking an acceleration from the 1.8% growth recorded in July. England saw average house prices climb to £310,000, reflecting a 2.3% annual increase.

Nationwide’s latest House Price Index also reveals that UK house price growth is now at a near two-year high, the strongest since November 2022. Key cities such as Manchester, Liverpool, and Birmingham remain hotspots for property investors, offering strong returns in the current market climate.

Buyer Affordability and Mortgage Trends

Several factors have improved affordability for buyers. Rising household disposable incomes, coupled with new mortgage products featuring lower borrowing costs, have made purchasing more accessible — especially for first-time buyers. The latest figures indicate a rise in consumer credit borrowing, while mortgage approvals from the Bank of England surged to 65,600 in September, marking the highest level since August 2022.

UK Rental Market — High Demand, Limited Supply

Tenant demand continues to outstrip rental supply across the UK, including London. There are 25% fewer rental properties available compared to 2019, making it increasingly challenging for prospective tenants. With homeownership remaining out of reach for many, a significant portion of renters expect to stay in the Private Rented Sector (PRS) long term.

The latest ONS data highlights that only 232,470 new homes were built in the UK over the past year, keeping rental stock below pre-pandemic levels. Zoopla forecasts that UK rents will rise by 3-4% throughout 2024, with the supply-demand imbalance likely to persist into 2025.

According to the latest Royal Institution of Chartered Surveyors (RICS) survey, London’s rental market has seen slower growth in line with seasonal trends and affordability constraints. While proposed rental reforms may push some landlords to exit the market, those taking a long-term approach could benefit from reduced stock and stabilizing mortgage rates.

Looking Ahead

With house prices showing steady growth, mortgage approvals on the rise, and rental demand at an all-time high, the UK property market continues to present strong opportunities for buyers, sellers, and investors alike. Whether you’re considering selling or looking for your next investment, now could be an ideal time to explore the market.

Have you got a property you're thinking of selling? Now could be the perfect time to get your property valued. Contact us today for your free valuation.