May Property Market Analysis

A quarter of 2024 has already passed and we are entering into peak selling season. Between now and the end of the academic year there is still time to put your property up for sale, exchange contracts and perhaps even complete. Here’s the current mood of the moving market.  

Confidence continues to build among sellers, with an increase in the UK’s average asking price. According to Rightmove’s April House Price Index, this figure has increased by 1.1%, with a new average asking price of £372,324. This positivity is encouraging more sellers to come to market, with new instructions 12% up when compared to April 2023.   

Completions reach new heights

The portal has also seen the number of sales agreed soar. According to its report, the number of completed sales has increased 13% in the last 12 months. Large top-of-the-ladder homes are enjoying the most success, with the number of these sales agreed up 20%.  

House prices hold firm

It’s no surprise that there has been a knock-on effect on sold house prices. Zoopla’s April House Price Index found the UK’s current average house price edged up 0.1% to £264,500 during April. The Nationwide’s latest House Price Index has the average house price at £261,962.  

When it comes to rents, we’re firmly back in ‘rising’ territory. HomeLet’s latest rental index showed the cost to rent had increased 0.9% in the last month. It now costs an average of £1,273 to rent a property in the UK.  

Rents were not the only thing in lettings to increase. Landlords will also find yields are on the up. Yields in Great Britain have risen from 4% to 4.5% between March 2023 and March 2024, declared a report in Property Industry Eye.  

Activity hasn’t been confined to High Street agents. Since our last report, The Law Society released its 5th edition of the TA6 Property Information form. Sellers will now be asked to provide greater depth of detail, including (but not limited to) questions on EV charging points, solar panels and coastal erosion.  

Lords have their say on rental reforms

After a host of amendments, the third Commons reading of the Renters’ Reform Bill  took place in April. The Bill, now completed, has moved to the House of Lords. Time is now of the essence as all the Lords stages need passing before a General Election.   

If an election is called and Parliament dissolved before the Bill gets Royal Assent, the House enters a period called ‘wash up’. This will see the Government and the opposition try to speed up Bill progress. Failure to do this before an election means the Renters’ Reform Bill must be abandoned or reintroduced from scratch.  

There’s also a sense of change in Scotland following the resignation of First Minister Humza Yousaf and the removal of Patrick Harvie, minister for zero carbon buildings, active travel and tenants’ rights. Experts are questioning whether the recently published Housing Bill – which proposed rent control measures – will be revised. Many hope there will be better support for landlords.

Scottish ban on boilers and wood burners

The political change overshadowed an important property-related announcement. New homes built in Scotland are now banned from containing oil or gas-fired boilers, as well as bioenergy sources, such as wood and log burning stoves. Instead, heat should be provided by heat pumps or heat networks.  

Wales also saw a shuffle of key political figures. The new First Minister, Vaughan Gething, was quick to appoint a Minister for Housing within the first few weeks of taking charge. Julie James steps into the role and is already under pressure to rethink the country's plan to consider rent controls. 

If you would like to know more about your local property market, please get in touch.