The housing market is continuing to adjust to mortgage rates over 4%, with positive signs of increased activity, according to Zoopla’s latest House Price Index. This update holds significant information for homeowners across the country, but obviously, we have an interest in Bury St Edmunds.
House Price Growth: House prices have increased by just 0.1% over the past 12 months, bringing the average price to £265,600. Despite this modest annual growth, house prices have risen across all regions of the UK during the first half of 2024.
Positive Outlook: Zoopla forecasts that UK house prices will grow slowly but steadily over the second half of 2024, expecting an average increase of around 2% by the year’s end. This outlook is strengthened by a higher number of homes for sale, the most in six years, providing buyers with more options and supporting increased sales activity.
The increased supply of homes on the market is a promising sign. More sellers mean more buyers, many of whom are looking to upsize to accommodate growing families. Buyers are also exploring areas further afield to find the best value for their money, driven by affordability considerations.
The greater supply has led to a 16% increase in the number of sales agreed compared to last year, with sales up across all regions of the UK. Sales agreed are now 22% above pre-pandemic levels. Buyers are currently paying 96.8% of the asking price, the highest percentage in 18 months, indicating robust market activity. On average, homes are selling for £16,600 below the asking price as of June 2024.
Impact of Government Policies
Recent government plans and the King’s Speech have not materially impacted the market outlook for the next 12-18 months. In the longer term, economic growth, rising household incomes, and increased home building will benefit both homebuyers and renters. The timing of the first base rate cut is crucial, as it will boost consumer confidence and market activity, even if it does not lead to a significant reduction in mortgage rates for new buyers.
Over the past 12 months, growth has been largely static, increasing by just 0.1%. However, the regional picture is mixed, highlighting a north-south divide. For instance, Belfast experienced a 4.3% increase, Northern Ireland saw a 3.9% rise, and Scotland had a 1.4% overall increase. Conversely, South East England saw a decline of 1%, South West England dropped by 0.7%, and the East of England, which includes Bury St Edmunds, experienced a decrease of 1.2%.
Market Stability: The gradual and steady growth in house prices suggests a stable market, which can be reassuring for homeowners.
Increased Opportunities: The surge in market activity and higher supply of homes provide more opportunities for those looking to buy or sell property.
Investment Potential: Despite the slight regional decline, the overall positive outlook and increased buyer activity may enhance the long-term value of properties in Bury St Edmunds.
Community Benefits: Government initiatives aimed at economic growth and increased home building can lead to improved infrastructure and community development, benefiting homeowners.
The housing market in Bury St Edmunds is showing signs of positive activity and stability, despite some regional declines. Homeowners can remain optimistic about the gradual growth and increased opportunities in the market.
Richard Donnell, Executive Director at Zoopla says: “The housing market is starting to hot up after a stone cold 2023. There are clear signs of growing confidence amongst buyers and sellers with many more homes for sale and buyers paying an increased proportion of the asking price. We expect to see more sales but house price inflation will be kept in check by more supply and affordability pressures keeping a lid on buying power, especially across southern England.”
Richard Donnell concludes by saying: “While we don’t expect to see any impact from the new Government, or the King’s Speech specifically, in the next 12-18 months, it is possible we will in the longer term. The housing market is essentially an extension of the UK economy. Government policies focused on economic growth that feeds into income growth will help support both home buyers and renters. The Bank of England will have more impact on the market in the short term and much depends on the timing of the first base rate cut.”
At Coakley & Theaker, we aim to support the local community as much as we can, and we know this is an extremely trying time. A lot of people are looking for support and guidance, and if you have any property or housing related questions, we are more than happy to assist you, so contact us today by calling us on 01284 769691.
Bury St Edmunds, Suffolk 01284 769691 or 01359 256821 or 01449 737706 or 07803 138123
Email: [email protected] or [email protected]
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