Market Resilience Amid High Base Rates
Despite the higher base rates set by the Bank of England, the UK property market remains active. The latest analysis from Home.co.uk reveals that while Greater London and surrounding areas are recovering slowly, the northern, Scottish, and Welsh markets have rebounded robustly since the December 2022 price dip.
Regional Market Variations in Property Investment
Regional variations show a resilient property market, especially in the North, Scotland, and Wales. These areas have not only recovered from past price drops but continue to thrive, making them attractive for property investment.
Rental Market's Role in Supporting Property Investment
The UK rental market has seen rents rise by 44.6% over the last five years, significantly supporting the property sales market. This increase in rents, particularly in the North, underpins property values and is a crucial consideration for future property investment strategies.
Impact of Current Base Rates on the Property Market
With inflation below target, a reduction in the Bank of England's base rate seems overdue. High borrowing costs are stifling investment in new builds, including energy-efficient rental properties, which are essential to meet the growing rental demand.
Vendor Patience in the Buy-to-Let Market
Despite high borrowing costs, vendors are showing patience, resulting in fewer price cuts for properties on the market. This patience reflects a resilient buy-to-let market, where typical time on the market remains reasonable despite increased stock levels.
Regional Rental Growth Trends
Asking rents continue to grow in most UK regions, with significant increases in Scotland, Wales, Yorkshire, the South West, and the North East. However, some areas like Greater London and the Midlands have seen slight declines, indicating regional disparities in rental market trends.
Steady Growth in Property Asking Prices
The mix-adjusted average asking price for properties in England and Wales has seen a slight increase of 0.2% over the last month. This steady growth, coupled with regional variations, provides a stable environment for property investment and buy-to-let opportunities.
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