AUGUST 2024 | PROPERTY MARKET REVIEW
In our market review of August 2024, we look back on noteworthy surveys and reports, significant policy decisions and other developments affecting the UK residential property sector.
Perhaps the most important development occurred at the very start of the month, when the Bank of England voted to reduce the official Bank Rate to 5.0%. The decision has injected new energy into the market, with lenders cutting their mortgage rates and attracting new home-buyers to the market. Numerous price indices have since reported an upturn in buyer confidence and sales volumes.
At the same time, real-terms earnings are continuing to improve, with gains averaging around +5.4% annually while inflation stands at 2.2%. This should help to boost the disposable incomes of tenants and prospective home-buyers, which could provide more room for subsequent price growth.
There will still be challenges ahead – the Prime Minister has warned that the Autumn Budget is “going to be painful” – but there is little doubt that the underlying conditions in the property market are continuing to improve..
Darren Bennett
Managing Director
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