Market Comment (May 2024)
With two Bank Holidays in May, it’s not a surprise that things move a little bit slower this month. A couple of four-day weeks, and the opportunity to take a good break with fewer annual leave days means May often ticks by without too much going on.
Add in the climax of the football season and the start of the music festival season, and you can see why people take their eye off the ball.
However, there are still notable stories in the property market, and if you want to make informed decisions relating to your next move, we are here to ensure you have everything you need.
Market Steadies But Affordability Bites
The latest house price data from Halifax shows some welcome stability returning to the UK property market in April. But rising costs are making it tougher for buyers.
Across the country, house prices inched up just 0.1% last month, leaving the average UK home costing £288,949. While a modest increase, it signals the market is finding its footing after volatility earlier in 2023.
Annual house price inflation ticked up to 1.1% in April compared to 0.4% in March. This rebound reflects weaker price growth during the same period last year.
Rising mortgage rates off the back of Bank of England base rate hikes are stretching budgets. And those coming off low fixed deals face a payment shock.
As your local property experts, we understand the unique challenges Leytonstone homebuyers and sellers face in this volatile market. We can provide guidance on realistic budgeting, areas offering value, and timing strategies.
With signs the market is stabilising, now could be an opportune moment for serious buyers to make their move in Leytonstone before the next upturn.
Zoopla says its cheaper to buy than rent
At Trading Places, we are involved in property sales and the letting sector, and we know there are strong benefits to both areas. What is right for one person or household might be unsuitable for someone else.
This is why findings from Zoopla, saying it is 8% cheaper to buy a property than rent in the same area, in spit of higher mortgage rates, is of interest to us, and you.
The analysis focused on 500,000 homes listed for sale that can be purchased with a mortgage. The study indicates the average UK monthly rent is £92 more than the average mortgage amount for a first-time property buyer.
This time last year, analysis suggested it was more affordable to rent than buy property, but the above finding sees renting 8% more expensive than paying a mortgage.
Given the longer-term benefits of owning a home, there is a lot to be said for arranging a mortgage and buying a house. Of course, every buyer is unique, and we take your needs and situation into consideration. If you want advice tailored to your circumstances, come and see us, we are always happy to assist buyers and tenants.
Izabella Lubowiecka is the Senior Property Researcher at Zoopla, and she spoke on the matter, saying: “First time buyers are an important source of demand for homes accounting for 36% of home buyers looking to move home in the next two years. While higher mortgage rates have reduced buying power, our data shows there are many areas of the country where home ownership is more accessible assuming the buyer has saved a 20% deposit.”
Election Looming
With Rishi Sunak calling a July election, questions are rolling in as to how this might affect the housing market. Sentiment hasn’t changed too much in recent days, with houses and garden flats still proving popular, so we wait to see whether either side comes up with anything of note running up to election, relating to house building and which may influence voters on the property front. Potential, perhaps expected, rate cuts could well stimulate the market, so that’s what buyers and sellers seemed to focused on.
If you would like to learn more about Leytonstone, what the area has to offer, and how to achieve your goals in the local property market, we can help. To arrange an appointment, call us on 020 8558 1147 or send us an email at info@tradingplacesproperty.com
You will find Trading Places Estate and Letting Agents at 46 Church Lane, Leytonstone, London, E11 1HE; and we look forward to assisting you.
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