October Property Market 2024

Steady Price Growth and Regional Changes

The average UK house price currently stands at £267,500, with year-on-year growth varying between regions. Cities like Manchester (2.8%), Liverpool (2.4%), Leeds (2%), and Sheffield (1.5%) have seen moderate price increases. Overall UK house price growth remains lower at 1% over the past 12 months, up from a -0.9% decrease the previous year. This slower growth is largely due to affordability pressures that temper buyer demand. 

The October property market saw average asking prices for newly listed homes rise 0.3%, equal to +£1,199, reaching an average of £371,958, which is a rate well below the usual 1.3% increase for this season. However, regions with more affordable properties, such as the North East, Yorkshire & Humberside, and North West, are witnessing above-average growth, all-seeing around 2% growth. Meanwhile, prices have dropped slightly in the East (-0.3%) and South East (-0.1%). Overall, UK house prices are expected to record a 2% growth in 2024, as last year’s price declines are phased out of the annual figures.

Top Buyer Groups in 2024 

The significant upswing in property sales throughout 2024 reflects a resurgence of first-time buyers (FTBs) and existing homeowners who had delayed moving plans while waiting for more favourable borrowing conditions and a stable market.

Now, with interest rates lower and market confidence growing, FTBs are taking the lead, expected to account for 36% of all sales this year. Existing homeowners are also playing a substantial role, comprising 31% of purchases as they take advantage of improved market conditions to upgrade, downsize, or relocate. 

For investors, the share of cash buyers is particularly notable, projected to make up 27% of transactions. This group consists of mortgage-free homeowners and cash-ready investors who are strategically avoiding higher financing costs, allowing them to capitalise on properties without the burden of interest payments, a significant advantage in maximising returns.

Landlords purchasing with buy-to-let mortgages, however, have a smaller presence, accounting for only 7% of sales, as high mortgage rates create challenges for leveraged investments. Additionally, with continued rent growth, many investors are also evaluating rental yields more closely to optimise returns on high-demand rental properties, particularly in regions where rental yields are outpacing national averages.