Q4 2024 REVIEW
The fundamental forces that shape the UK residential property market continue to look encouraging. Demand is outstripping supply in both the house-buying and rental markets, and the affordability pressures that limited growth in 2023 and early 2024 are gradually easing. There are clear signs of improving conditions ahead although, as ever, careful choice and research will be essential.
· Sales activity is strong and market sentiment is generally positive.
· Average earnings are continuing to rise faster than inflation. Many households will be seeing a gradual improvement in their disposable incomes and this may support a desire to buy or rent better homes.
· House price growth has been accelerating slowly and is now exceeding CPI inflation according to most indices.
· Price growth continues to be strongest in the UK’s more affordable property markets.
· Rental demand remains very strong and rental values are still climbing at an inflation-beating rate.
· Regional differences in rental growth rates are not so pronounced as they were in previous quarters, with all parts of the UK producing respectable growth.
· Average yields are exceeding inflation in all UK regions but, again, tend to be strongest in the more affordable markets.
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