The latest data from Rightmove paints a very interesting picture of house price activity across the UK. Rightmove’s whole of market data and a poll over over 14,000 home movers show a market where activity levels have remained pretty stable over the last few months. The forward momentum of 2024 has continued into the summer and seemingly hasn’t been affected by the election.
What may be surprising to some (not the North Fox team) is that prices have been rising far faster in the North than they have in the South. In fact 5 of the 6 cheapest areas have seen new price records reached, while prices in the South East and East of England were the only areas to record price falls. It seems affordability is continuing to be the key driver of activity whilst mortgage rates remain high. Demand is focused on those areas where properties can be bought for less then the £285,000 cost of an average home.
Tim Bannister at Rightmove says: “Its always difficult to predict how home movers will react to sudden uncertainty, but looking back through the data, we can see that during previous election campaigns, market activity has remained largely steady. This election cycle has followed a similar pattern with the vast majority of respondents carrying on with their home moving plans.”
As rates begin to drop later this year it will remain critical that investors are mindful of the cost of living crisis. Properties that are in areas with headroom for growth at income multiples that are realistic for the local residents will outperform costlier regions where first time buyers are being priced out.
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