What is Driving the Early Start of the Autumn Property Market?

According to recent findings, the usually busier autumn property market has started earlier than the previous year. A lot of buyers and sellers are taking advantage of the property market boost due to numerous factors. This boost in the property market can be beneficial to both buyers and sellers. Let us explore how.

Why Have Property Listings Increased This Year?

In comparison to last year, sales have gone up by 27%, and buyers who were waiting to purchase are now more active. Also, property owners are more confident, and 14% more sellers have put their homes up for sale compared to this time last year. The average number of homes for sale per real estate agent has been at its highest since 2014.

Even though the property market has seen a boost in activity, it is taking sellers slightly longer than usual to find a buyer. Currently, it is taking an average of 60 days for sellers to find a buyer. This can be due to affordability in the market compared to previous rates. So, buyers are being more careful and taking their time.

According to research, here are some conditions of the UK property market:

• The average 5-year fixed mortgage rate is 4.67%, which is lower than July’s peak but higher than a few years ago
• The average price of a property has risen by 0.8% (£2,974) to £370,759
• In September, the price increase was double the long-term average

So, the UK property market has seen a positive growth in activity with lower mortgage rates in comparison to a few months ago and a rise in property prices. This can be helpful in contributing to the country's economy.

What Are the Reasons for Early Market Activity?

According to property market experts, autumn is usually a time for a busier property market. However, the property market activities started early this year, which can be credited to a number of factors. One of the most significant ones is the Bank of England (BOE) reducing the base interest rate from 5.25% to 5%.

When the base rate decreases, then the mortgage rate also decreases, and it opens a window of opportunity.

Another factor is the autumn budget, which the new government is delivering on 30 October 2024. Due to predictions that the autumn budget will contain potential Capital Gains Tax (CGT) rate and Inheritance Tax rate hikes, landlords are quickly selling their properties to save their tax liabilities beforehand.

Experts also believe that property owners are optimistic about the property market due to the new government and the possibility of a stable economy, which could account for this boost.

What Is the Result of this Property Market Boost?

As a result of the boost in activity, buyers looking for a new home have diverse options available. Due to this, buyers are taking their time and looking for a home with good market condition. This can be particularly helpful to first-time buyers.

People are also looking for an excellent quality home with a higher EPC rating. However, a higher EPC rating of A or B will also be more competitive in terms of price.

Conclusion

The UK property market has seen a significant increase in property market activities due to factors such as favourable mortgage rates and anticipation of potential tax changes. Both buyers and sellers are actively participating, which is helping the property market and the economy of the country. However, it is always beneficial to make informed decisions and take expert advice to lower the potential risks of property investment.