As we navigate through 2024, the property market is demonstrating remarkable resilience and growth, presenting exciting opportunities for both landlords and sellers. Despite facing challenges such as increasing mortgage rates, which have recently seen a significant drop from major lenders, and uncertainties over the general election, the market dynamics are creating a positive landscape for property investments and sales.
Recent developments: A positive shift in mortgage rates
In a move that has further bolstered market confidence, the Bank of England recently reduced the base rate from 5.25% to 5%. This adjustment is a positive development for both buyers and landlords, as it has led to more favourable mortgage rates from lenders. Lower borrowing costs can help ease the financial burden for property buyers and investors, making it an opportune time to enter the market or expand property portfolios.
Growing demand in the lettings market
The lettings market is experiencing a significant surge in demand. From January to July, we’ve seen an impressive 46% increase in lettings applicants year-on-year. This robust demand underscores the attractiveness of rental properties, even as more landlords exit the market due to higher mortgage rates and tax considerations. However, this scenario presents a golden opportunity for existing and potential landlords. The departure of some landlords means less competition and higher demand for available rental properties, potentially leading to increased rental income and better tenant quality for those who remain in the market.
Despite some of these challenges posed by rising mortgage rates and tax changes, being a landlord in today's market still holds significant advantages. The increased demand for rental properties ensures a steady stream of potential tenants, reducing void periods and increasing rental income potential. Additionally, landlords can benefit from the current market by strategically adjusting rental rates to reflect the heightened demand, thereby enhancing their investment returns.
Moreover, the evolving market conditions may encourage landlords to explore opportunities for property improvements and upgrades, further increasing the value and appeal of their rental properties. With the right approach and guidance, landlords can navigate the challenges and leverage the current market dynamics to their advantage.
Positive momentum in sales
The sales market is also thriving, showing remarkable growth over the past six months. Our applicant numbers have soared by 75% compared to the previous six months, and sales agreed have surged by an astonishing 88% during the same period. This surge reflects strong buyer confidence and a vibrant property market. Notably, we've seen significant rate drops from major lenders recently, further bolstering this positive outlook.
For those considering selling their property, the timing couldn't be better. We anticipate buyer demand to remain strong throughout the summer period, supported by favourable mortgage rates and high applicant numbers. The next four months are likely to be the best selling period of 2024, providing a prime opportunity for sellers to achieve optimal prices and swift transactions. If you're contemplating a move this year, now is the perfect time to take advantage of the current market conditions.
The property market in 2024 is marked by dynamic growth and positive trends across both lettings and sales sectors. Increased demand for rental properties and a thriving sales market present unique opportunities for landlords and sellers alike. By staying informed and proactive, property owners can capitalise on these favourable conditions, ensuring successful and profitable outcomes in the months ahead.
Whether you're considering renting out a property or selling your home, now is the time to act and make the most of the current market momentum. With the right strategy and support, you can maximise your opportunities and secure a successful outcome.