This week, senior mortgage and protection advisor at Oportfolio Mortgages Jade Pinkerton attended the latest Coutts Bank and Savills Market Update webinar. Many topics were discussed, but one of particular interest was the questions “Is now a good time to buy residential property?” As we edge into the final quarter of 2024, many potential property buyers are asking: is now a good time to buy? Based on the latest market insights shared with Jade by Coutts and Savills, the answer could well be yes—especially if you’re considering entering the residential market. In this blog, I am going to give an overview of the sentiments shared in the webinar.
Mortgage Rates: Some Relief At Last For Residential Property
The biggest relief is that we may have already passed the worst of the mortgage rate increases. The prospect of rates settling at around 3.5% by this time next year is welcome news, particularly as we move away from the volatility seen in the aftermath of COVID-19. While rates will likely never return to the 1-2% levels we once enjoyed, the current market is stabilising, and buyers can adjust their long-term plans with more confidence.
House Prices: A Gentle Correction
The UK housing market has seen a modest correction. Once inflation is factored in, this equates to a 13% drop in real terms, but nominally it’s only around 5%. The good news is that agreed sales are increasing and returning to more typical levels. For those looking to enter the market, especially first-time buyers, this could be a golden opportunity. House price growth is slower, and with rents up 15% over the past two years, owning your home could be a smart financial move.
A Good Time for High-End Buyers
If you’re looking at properties above the £1 million mark, it’s worth noting that this segment has been hit the hardest by the correction. This could make it a particularly interesting time to buy high-end properties, as they may offer more value now than they did just a year ago. Overall, despite the challenges, the residential market is offering more opportunities for buyers as mortgage rates ease and supply remains constrained.
Speak To A Mortgage Advisor If You Are Thinking Of Buying
If you are thinking of buying a property either this year or next, the best place to start is by speaking to a mortgage advisor. Our team of experts at Oportfolio mortgages are here to help you every step of the way in the buying process. Give us a call or send us a message today.
