Landmark’s recently published Q1 Residential Property Trends report reveals a cautiously optimistic UK property market. However, house prices and buyer and seller activity still react strongly to external factors like changing interest rates.
The report indicates a positive trend in supply. Listings, on average, were 5% higher than in 2019 during Q1. This is better than previous quarters, which matched 2019 levels. This increased supply suggests a good start to 2024. It also hints that demand might rise in Q2 as more sellers transition into buyers.
Despite the recent availability of less expensive mortgage options, limited affordability still hampers demand. The number of properties “Sold Subject to Contract” (SSTC) and completed transactions is around 40% lower than in 2019.
The report shows a surge in high-valued mortgage applications at the beginning of Q1. January and February saw significantly more applications than last year (up by 20% and 15%, respectively).
However, in March, there was a slowdown in applications due to lenders adjusting their rates. This decline was more significant than usual, indicating a reactive market.
While buyers may be cautiously optimistic about the property market, tenant demand remains high. According to the latest Goodlord Rental Index, rents increased by more than 6% in March compared to last year. Additionally, Goodlord’s data shows that rent in March 2024 is a staggering 28% higher than in March 2020.
With rental figures remaining substantial and house price growth stalling, 2024 offers buy-to-let investors the opportunity to find good-value properties with potentially high rental yields, mainly if they are cash buyers and not reliant on a mortgage.
Find Out More: Check out our guides on creating a real estate business plan and how to buy multiple rental properties for more insights.
