The recent interest rate cut is revitalising the housing market

The UK housing market has been buzzing with optimism since the Bank of England’s recent 0.25% interest rate cut, bringing rates down to 5%. This is the first reduction in interest rates in four years, and while it may seem small, it is already having a noticeable effect. Now, buyers who were previously hesitant to buy a new home may want to reconsider their decision, given the decrease in mortgage rates. We at Benham and Reeves are eagerly anticipating the impact of this change on both homeowners and investors.

Boosted market confidence

Rightmove reports an impressive 19% rise in buyer enquiries from last year, a substantial increase from the 11% reported earlier in July. With sales agreed now 16% higher than they were the same previous year, the market shows a clear recovery. The increased number of buyers is also backed by a 5% rise in new sellers, showing a growing confidence in the market. Also now with inflation falling to 2.2%, buyers have a positive outlook with a stabilising market.

UK house prices are on the rise

In June, the latest data from the Office for National Statistics (ONS) showed that prices had increased for the fifth consecutive month. This positive trend suggests a recovering from a period of slow growthafter the stagnation caused by high mortgage rates. We expect that this upward trend will continue particularly as interest rates continue to drop. And, we at Benham & Reeves support our clients in making the most of this change whether they are interested in buying or selling property in London.

London’s rental market is still in high demand

The rental market remains hot in London. The competition for rental properties has doubled since before the pandemic, with more than twice as many enquiries per property. Foreign students are leading the demand for well-located apartments with top amenities, such as concierge services, for added security and convenience.

Rent inflation remains strong

Even with the interest rate reduction, rental inflation in the UK stays high. The ONS reported that average private rents in the UK increased by 8.6% in the year leading up to July 2024, with London experiencing the highest rise at 9.7%. Although the increase of 11.2% in March 2024 was a record high, the current increase still shows that rental demand is pushing prices up.

Discovering UAE property opportunities at our Singapore Office

The UAE property market is showing strong resilience and continued growth, particularly in key areas like Dubai and Abu Dhabi. Demand for luxury real estate is increasing, driven by foreign investors and high-net-worth individuals. And in advent of this, our Singapore office recently hosted a successful property event on 6 and 7 September, highlighting prime developments in the UAE. The event offered investors a great chance to discover the thriving UAE market and gain insight into the exciting investment opportunities.

Directors are visiting Asia

We’re also taking the opportunity to connect directly with our overseas clients. Our directors, Anita Mehra and Marc von Grundherr will be travelling to Asia in September, with plans to visit Singapore and meet with clients to talk about the newest developments in the London property market. From 27 September to 1 October, they will be in Singapore to offer insights on market dynamics, growth areas, and investment opportunities.

Register now to make the most of the interest rate cut, and find new property opportunities in London’s competitive rental market. To know more, contact us, and we’ll help you transform these market opportunities into a successful property story!