The UK’s property market stays on track after general elections

The UK’s sought-after property market witnessed steady movement throughout the general election campaign, as many homebuyers moved ahead with their plans. Their decisions seemed less impacted by the politics of elections and more motivated by individual circumstances, such as employment prospects, economic activity and overall affordability.

Positive news came in over the first weekend of August as the Bank of England (BoE) lowered the interest rate to 5% from 5.25%, marking the first rate cuts in four years. Some leading banks and building societies in the UK, such as Halifax, Nationwide, Natwest and HSBC, had already lowered their mortgage rates before the official announcement made by BoE.

Increase in enquiry levels

At Benham & Reeves, we are seeing an increase in new instructions and the number of valuations we carry out. As more stock enters the market, enquiry levels are picking up as buyers welcome more property choices.

Positive news for the economy

The steady rate of inflation held at 2% for the second consecutive month, and the pound hitting a one-year high against the US$, reaching $1.3044 were positive outcomes for the UK economy.

Statistics suggest a growth in the housing market

According to data published by Rightmove, the number of sales agreed is 15% more than what it was during the same period a year ago when mortgage rates were nearly at their highest. The number of new sellers coming to the market in the last four weeks is also 3% more than last year. These stats reveal that buyers are not discouraged by election uncertainty and that lower mortgage rates would most certainly boost market activity.

The Office for National Statistics (ONS) reports a 2.2% increase in the average UK home value over the 12 months leading to May. On a monthly basis, prices in May were 1.2% higher than in April. In London, where the average property value currently stands at £523,376, prices rose by 0.2% over the same 12-month period.

High rental demand in London continues

London continues to face a chronic shortage of rental properties, despite a slight improvement in rental stock as new developments are completed this year. Our branches have waiting lists of fully vetted tenants eager to move in as soon as a property becomes available, resulting in many apartments being rented out before they even appear on our website.

With more than 14 applicants per property, many overseas London landlords are looking to capitalise on the city’s growing rental demand. To help landlords manage successful tenancies, read our blog on services provided by London’s leading letting agents.

London rents continue to rise

According to Rightmove, rents in London have reached a new record high of £2,661, reflecting a 4% increase compared to last year. However, this growth rate has slowed from the peak of 16% witnessed in 2022 during the post-pandemic rush to ‘normalcy.’

We are currently managing the seasonal surge in demand from students starting university in the autumn, causing our tenant waiting lists in the UK capital to grow fast.

Positive response to London property events in Singapore

Our team in Singapore has been busy previewing White City Living’s latest phase – The Solaris and Wandsworth Mills preview to our VIP clients.. We have also been showcasing some top developments by St George at Berkeley’s Singapore office. These include The Green Quarter in Southall, Camden Goods Yard in Camden and Silkstream in Barnet.

We expect August to be another busy month, as we bring the exclusive launch of The Redwood at TwelveTrees Park in West Ham. With 21 branches across London and a dedicated team in Singapore, you can contact us if you wish to buy, sell or rent a property in London.