The October 2024 Zoopla House Price Index reveals an active and evolving UK property market, presenting opportunities and challenges for buyers, sellers, and landlords alike. In this month’s report, we’re diving into the data to uncover insights for those considering their next move in the housing market, whether it’s buying, selling, or investing in property.
House Price Growth Continues to Steady
House price inflation has edged up to 1% year-on-year, a notable shift from last year’s -0.9% decline. While prices are rising, the increase remains modest, kept in check by high supply and affordability constraints. A large volume of homes for sale and a consistent demand means that buyers can still find competitive opportunities in this relatively stable market.
For potential property sellers, this steady price growth provides an attractive opportunity to market properties. For buyers, especially those entering the market for the first time, now may be a more affordable time to purchase, with rates and prices holding steady and supply high.
First-Time Buyers Driving Market Demand
First-time buyers (FTBs) now make up the largest share of home purchases, accounting for 36% of all sales in 2024. The growing cost of renting, combined with decreasing mortgage rates, has tipped the scales in favor of buying over renting. In fact, the cost of mortgage repayments on a typical FTB home is currently 17% lower than renting.
This shift has made the property market more accessible for new buyers than it was just a year ago. Additionally, 12% of homes listed for sale are former rental properties, often priced lower than average, which provides an excellent opportunity for FTBs to enter the market with more affordable options, especially in high-demand areas like London.
Regional Price Trends Reflect Affordability
House prices are growing most quickly in the more affordable regions of the UK, including:
- Northern Ireland (+5.6%)
- North West (+2.3%)
- Yorkshire & Humberside (+2.0%)
These regions have experienced a surge in demand as buyers look for more value for their money, while in contrast, the Eastern (-0.3%) and South East (-0.1%) regions have seen small price declines. For those looking to invest in property, targeting regions with strong growth potential and buyer interest may offer better returns.
Sales Pipeline at a Four-Year High
With lower mortgage rates boosting buyer confidence, the market has seen an uptick in sales activity, leading to the largest pipeline of agreed sales in four years. The total value of homes currently in the sales process stands at £113 billion, a 30% increase from October 2023. This high level of sales activity is expected to carry momentum into the new year, as many recent sales are projected to complete in early 2025.
For sellers looking to enter the market, now may be an ideal time to list, as active buyer interest remains strong. At Sobio Properties, we can help you position your property for maximum visibility and appeal in this competitive landscape.
Potential Stamp Duty Changes for First-Time Buyers
Currently, FTBs in England and Northern Ireland benefit from stamp duty relief on properties priced up to £425,000, with partial relief for properties up to £625,000. However, changes expected in April 2025 may see these thresholds return to pre-2020 levels, potentially adding costs for many first-time buyers, especially in the South East and London, where home prices exceed these limits.
If you’re a first-time buyer, consider acting before these potential changes take effect to maximize current stamp duty savings. Working with a property expert can help you navigate these changes and make an informed purchase.
How Sobio Properties Can Help You Navigate the Market
Whether you’re a buyer, seller, or landlord, Sobio Properties offers expert insights and services tailored to the current housing market dynamics. With our deep understanding of regional trends and buyer behavior, we’re here to support you in making the best property decisions for your needs.
🏠 Ready to get started? Contact Sobio Properties today to discuss your property goals and learn more about our services in property management, sales, and letting. Let’s make the most of this evolving market together. Reach out now, and let’s talk about how we can help you succeed in the current housing landscape.
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