WEALTH: Is confidence in the UK property market starting to return? We dig deep into the house price data #151

Heath, Wealth & Wisdom with Nicole Bremner

EP151: January 2024 has started well in terms of confidence returning to the UK property market. The cost of borrowing has started to decrease as mortgage lenders fight for market share. Santander has launched a 5-year fixed rate at 3.84%, which is very different to the average rate of 6.66% during August 2023. The Bank of England may start to cut interest rates sooner than initially thought. This will be welcome news to homeowners, businesses and the wider economy.

The positive indicator of the housing market is that mortgage approval rates are 25.6% higher than 12 months ago, which will filter through to a greater number of property transactions over the next few months.

Key Points:

• Nationwide, Halifax and Rightmove have reported: -0.2%, +3.1% and +0.1% over the last 12 months. Nationwide, Halifax and Rightmove show that prices increased from last month (on a monthly basis).
• ONS figures show increases of -1.4% nationally and -4.8% in London.
• Rents have increased by 7.5% nationally and 4.6% in London. The average monthly rent is now £1,280 nationally, and £2,081 in London. They are predicted to increase by 25% over the next 2 years as the shortage of rental stock increases as some landlords leave the market.
• The Bank of England rates have remained on hold at 5.25% for the fifth consecutive month, and is forecast to reduce rates as early as May 2024.
• Lenders have started to reduce the rates available on 2 year and 5-year fixed terms, as they predict that Bank of England rates will decrease to around 4% over the next two years.
• Stamp duty: it has been muted that if Labour are elected in at the next General Election in the second half of the year, they will increase SDLT for overseas buyers.

My Property Consultant believe that prices will remain constant for the next 6 months, but some areas may see slight decreases (around 3-5%) but it does depend on the area and type of property.

CONNECT WITH EYEEDUL
Website: https://myproperty-consultant.london/
LinkedIn: https://www.linkedin.com/in/eyeedul-haque/
Instagram: @eyeedul_mypropertyconsultant
HOSTED BY: Nicole Bremner is an investor, certified financial coach, nutritionist, author and mum-of-three. In 2009, having had a successful career in financial services, like many women who take a ‘career break’ to have children, she found herself at a crossroads, not entirely sure what path to take next. Combining her financial knowledge with her passion for good architecture and design, Nicole was able to build on her experience and expertise to develop a new career, which fit around her children, and spent the next decade building a multi-million property portfolio in London. Now she combines her passion for property, financial literacy and health into this top raked podcast.
CONNECT WITH NICOLE
Website: http://www.nicolebremner.com/podcast
LinkedIn: https://www.linkedin.com/in/nicolebremner
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Disclaimer: The views and opinions expressed in this podcast belong solely to the host and guest speakers. The view and opinions of the guest speakers do not represent that of the host. Always do your own research.