2024 House Price Trends in London Revealed
What the Latest House Price Stats Mean for Homeowners
The UK housing market is experiencing a period of steady recovery, according to the latest data from leading property portal Zoopla.
The Zoopla House Price Index is a statistical tool used to measure changes in the price of residential properties.
Along with other indexes, including ones created by Rightmove, the Land Registry and several mortgage providers, it’s a helpful indicator of trends in the property market – and that’s why homeowners should take note of it.
Its latest headline stats were:
· Buyer demand rises as mortgage rates fall.
· Mortgage rates fall to 4.5% for 5-year fixed-rate deals as the number of homes for sale hits a 7-year high.
· The average UK house price has risen by 1.4% so far this year and is on track to be 2.5% higher by the end of 2024.
· Meanwhile, buyer demand is up 20% on July 2023, as the number of sales agreed rises 25%.
The risks of overpricing your property
Despite the market’s stability, sellers need to remain mindful of pricing strategies. In layperson’s terms, beware of overpricing your property.
Overpricing can result in properties taking more than twice as long to sell.
Zoopla’s data also shows that homes requiring a 5% or greater price reduction typically take longer to sell than those priced accurately from the outset.
The impact of mortgage rates on buyer affordability
As usual, the property market remains sensitive to mortgage rates. A positive was the Bank of England’s 0.5% base rate cut last month. Future decisions around the rate will continue to impact buyer affordability.
As a result, we’re encouraging sellers to consider setting realistic prices to attract serious buyers and ensure a timely sale.
We’ll also be keeping a close eye on the next base interest rate decision to be announced by the Bank of England on Thursday 19 September.
Future market expectations and affordability concerns
According to the index’s report, the housing market is expected to remain balanced, with steady price growth and continued demand driven by gradually improving buyer confidence.
However, affordability remains a key issue, with buyers looking for value-for-money purchases.
How we can help
We work closely with our sellers so that they can understand market dynamics and why valuing properties realistically achieves the best results in this constantly evolving market.
Contact us today with any questions on selling (or buying) a home this autumn.
*Sources: Zoopla House Price Index – 28 August 2024.