July Market Update

Was it more expensive to buy or rent a property in June? Has momentum stalled, with home movers starting their summer holidays early? With six months of the year complete, we’re in a good position to evaluate the analysis. Here are 11 things we learnt about the property market in June.  

1) Asking prices stopped rising: after five months of consecutive asking price rises, Rightmove’s June House Price Index revealed the upwards streak has ended. The value of new properties coming to market fell £21 in June, with the UK’s average asking price adjusted to £375,110.  

June saw transaction values increase

2) Sold house prices crept up: the Nationwide’s June House Price Index noted a 0.2% rise in sold house prices. This followed a 0.4% increase in May. According to the building society, the UK’s average sold house price is now £266,064.  

UK regional differences

3) North Ireland tops the price table: the Nationwide’s House Price Index also showed one region is pulling away in terms of values. House prices in Northern Ireland increased 4.1% when comparing Q2 2024 with Q2 2023. This figure was 1.4% in Wales and Scotland, and 0.6% across England.  

4) The market remains buoyant: the property market is performing better in 2024 when compared to 2023, claim Rightmove. The portal says the number of sales agreed in June was 6% higher than 12 months ago. Also outstripping 2023 is buyer demand, which is now 5% higher than last year.  

5) Zoopla identifies 3 upwards trends: Zoopla’s June figures concur with Rightmove’s. It said demand for homes was up 6% year-on-year, with the number of sales agreed increasing 8%. The portal forecasts house prices will rise 1.5% by the end of 2024.     

6) UK housing stock lacks energy efficiency: Rightmove’s ongoing energy analysis revealed that at least 18 million homes in the UK have an EPC grade of D or below. That accounts for more than half of the nation’s property stock. The most common EPC rating was D.   

7) Increase in first-time buyers with dependents: new research by Santander revealed the number of first-time buyers with at least one dependent has doubled in 15 years. In 2009, only 10% of buyers had at least one dependent, whereas that figure was 20% in 2023. An increasing number of first-time buyers in their 30s and 40s is thought to be behind the trend.   

Smart homes in demand

8) Purchasers willing to pay a premium: Samsung’s latest survey found 79% of home movers looking to rent or buy a new property in the next five years want a smart home, and they are willing to pay a 7.7% premium for it. Of those questioned, 63% wanted technology to deliver cost savings. Additionally, 70% said energy efficiency was a compelling reason to use more tech, with 84% wanting to reduce energy bills.  

9) Rents continue to rise: the days of soaring rent rises are over for now. Zoopla found rents for new lets rose by 6.6% in the last year. This compares to 16% in the year to October 2021.  

Budgeting for rent payments

10) Average rent just under £1,300 : Zoopla and HomeLet’s average monthly rent findings for June are almost identical. Zoopla says tenants in the UK are paying an average of £1,226 per month. HomeLet has this figure at £1,299.  

11) New rules announced for Northern Ireland rentals: the Smoke, Heat and Carbon Monoxide Alarms for Private Tenancies Regulations (Northern Ireland) 2024 means smoke, heat and carbon monoxide alarms will be mandatory in private rented homes. The law comes into force from 1st September for new tenancies, and from 1st December for existing tenancies.  

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