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    Trends in the Property Market

    Supply & Demand

    Demand for housing still outweighs the supply in many cities across the UK. The rising levels of demand are due to many factors, including wage increases in many areas and falling mortgage rates. Meaning, that buyers are now in a better financial place and are returning to the market. This dynamic will create a stronger, more confident market, leading to growing market activity. Consequently boosting competition in the market, and inflating property prices.

    Property prices have increased from December to January 2024 and for newly listed properties, prices have grown by £4,500 on average. With property prices steadily climbing, there is increased investor confidence as buyers are optimistic about the growth potential.

    property increase graph

    Rates Remain Steady

    Mortgage Rates

    The current Bank of England base rate is 5.25% as of 1st February 2024. However, Rightmove states that the average five-year fixed mortgage rate is currently 4.64%, and the average two-year fixed rate is 4.97%. These have dropped compared to December, so rates are steady overall.

    Skipton Building Society is cutting selected residential and buy-to-let (BTL) fixed rates by up to 0.46% from January. The slight decline in rates will work in favour of investors if the trend continues because decreasing rates will result in smaller repayments for landlords.

    Percentage and house balanced

    A Resilient Market, Activity Remains High

    Property Market

    These statements prove that the property market is strong, and it is the perfect time to invest. Those who purchased a property in the last few years are now benefiting from the returns on investment and in future, as properties appreciate, investors can release equity to have access to extra cash!

    Market activity is currently high with the number of sales agreed up year-on-year across all countries and regions. Yorkshire and the Humber are leading the way with an increase of 19%, followed by the West Midlands with a 17% increase. Interestingly, the final weeks of 2023 recorded 17% higher sales in comparison to a year ago. This data shows that buyers are confident in the market as buyer demand is growing. Rental demand is increasing alongside this as more people are looking for properties to rent, meaning properties will be quickly occupied.

    Computer with projected symbols

    The Rental Market

    Rents jumped 9% in the last year, adding £1200, a month’s worth of rent, to the average annual bill. This means investors will generate more profit annually, and could potentially result in a higher rental yield.

    In Yorkshire, the annual rental increase was 7.7% last year. This is great for investors as it means they get higher returns on their investments!

    Rental yields in the UK 2024 | Data from Zoopla

    Region Average Price Rental Yield
    East £419,506 3.4%
    North East £184,568 4.45%
    North West £254,009 4.66%
    Yorkshire & the Humber £246,411 4.12%
    percentage and coins increase

    Where to Invest 2024?

    Property Industry Eye states that Leeds and Liverpool were in the top 10 cities for buy-to-let properties in 2023. Fortunately for investors, we have multiple developments across Liverpool and Leeds with more upcoming in 2024.

    Invest in Leeds

    Leeds has many plans for regeneration and is continuously growing. It is predicted that as a result of the South Bank Leeds regeneration project, the population of Leeds will have a growth of more than 30,000 and around 35,000 new jobs will become available.

    As part of the Leeds South Bank Regeneration project, Aire Park will transform a large, unused part of Leeds city centre around The Tetley when it is completed in 2025. The office buildings and homes from Phase One are now completed, while Phase Two is well underway. This development plans to create 75,000 square feet of office space and 7,000 square feet of retail and leisure space. The regeneration schemes planned will enhance desirability in the area, attracting a larger pool of potential tenants.

    Liverpool BTL

    Liverpool has undergone many regeneration projects and has completely transformed over the past decade. It is now one of the major economies outside of London. An impressive £10 billion is being invested into further redeveloping the city and Liverpool has huge potential to become one of the greatest investment locations.

    The Liverpool buy-to-let market has received increasing amounts of attention over the years. Liverpool is one of the top-performing locations to invest in buy-to-let. Central Liverpool surrounds a major road that links the City Centre to the motorway, making it an easily accessible city and has good connectivity to other areas. The Central Liverpool zone is also home to some of the most recognisable areas in the city. These factors make Liverpool an attractive area for people to want to move to.

    Liverpool City View

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