Chase Buchanan Sales and Lettings Report - Q2 2024

Chase Buchanan’s Research Analyst David Rees summarises property market changes over the last quarter in Chase Buchanan Sales and Lettings Report:

Economic Overview: The Bank of England reduced interest rates from 5.25% to 5% in August 2024, providing some relief to borrowers as some mortgage rates dropped below 4%. Meanwhile, the newly elected Labour government has pledged to introduce housing reforms aimed at increasing supply, supporting first-time buyers, and improving renters’ rights.

Sales Market: House prices in the South West fell by 0.3% during the second quarter of 2024, with a notable rise in properties coming onto the market as many homeowners struggle with the higher cost of refinancing. The supply of available properties has risen by 23%, reaching its highest level in five years.

Lettings Market: Despite a 10% increase in the number of rental properties available between April and June 2024, rents continued to rise, with an annual increase of 7.8%. While rental growth remains strong, it has begun to slow, reflecting the fact that tenants are becoming more resistant to further rent hikes amid rising inflation.

Market Projections: Looking ahead, house prices are expected to recover gradually, with modest growth anticipated over the next few years. Similarly, while rents have risen sharply, the pace of growth is likely to moderate as tenants face affordability constraints.