What’s Happened to The UK Property Market in 2024?

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The past few years have been tumultuous for the UK property market, with significant events shaking the country and transforming the economy.

From the impact of the COVID-19 pandemic and subsequent lockdowns to the war in Ukraine and the cost-of-living crisis, the property market has faced numerous challenges.

However, recent evidence from RWinvest suggests that not only has the market endured these challenging times, but it has also thrived and emerged stronger.

House Prices Remain Healthy in 2024

Source: bankrate.com

According to Zoopla’s House Price Index for March 2024, there are currently 11% more property sales on the market than in 2019, surpassing pre-pandemic levels.

This is not only an indication of solid demand for housing across the country but also a testament to the stability of the UK housing market. It has shown resilience in the face of significant upheavals that have rocked other investment classes to their core.

So, how is the UK property market in better health than it was four years ago?

There are several ways to assess its performance.

One standard metric is house prices.

Rising prices indicate a healthy market while falling prices raise concerns.

The Land Registry’s UK House Price Index reports a 6.3% annual price increase from January 2022 to January 2024, demonstrating that the market is still going strong and prices are higher than in 2022.

Property Sales on the Rise

Another measure of the market’s health is the number of sales agreed upon and completed.

Currently, sales are 11% higher than in 2019, indicating increased activity compared to four years ago.

This high demand for housing is a positive sign for the overall market.

The number of properties available for sale is also a crucial factor.

Zoopla’s data shows a 65% increase in homes on the market compared to 2022, with estate agents having an average of 25 homes for sale, up from 14 last year.

This increase in supply provides buyers with more choices, leading to more realistic and varied house prices.

It also helps meet buyer demand, contributing to market stability after the volatility of 2022.

Stability Makes for a Secure Investment

Several reasons contribute to the UK property market’s health and stability compared to other investment classes.

Firstly, property is a physical asset, unlike stocks or shares, making it less prone to dramatic value fluctuations.

This stability helps steady the market during uncertain times. Additionally, there has been consistently high demand for housing coupled with a low supply, leading to rising prices.

Unlike more liquid investment methods, property is known for its ability to endure tough times. For example, the value of a single unit of Bitcoin has decreased by more than 29% since April 2022, highlighting its instability and riskiness as an investment strategy. In contrast, property, being a necessity for everyone, continues to provide reliable returns even when other investment options falter.

As the cost of living crisis tightens wallets across the nation, many potential investors find themselves lacking the funds necessary for certain investment classes.

However, property remains an essential need for all individuals, making property investors thrive even in challenging economic climates.

What Do People Want from Property in 2024?

The COVID-19 pandemic also drastically altered how people perceive their living spaces and what they need from their homes.

With the rise of remote working, more consideration is given to the location of properties. This shift has driven demand in cities like Liverpool and Manchester, where significant regeneration efforts have attracted young professionals.

This trend has boosted the buy-to-let sector, as many properties cater to this target audience to stay ahead.

Why Should You Invest in UK Property in 2024?

Source: thinkrealty.com

Despite some concerns by experts at the beginning of the year, UK property remains one of the most profitable and continually growing opportunities to get involved with in 2024 – for UK and foreign investors alike.

The biggest appeal behind property investment is its potential for long-term capital growth.

As demand for housing increases, prices will again continue to grow alongside it and offer some of the highest returns possible in the UK (and beyond).

For example, in 2021, the average value of property surpassed £250,000 for the first time in history, increasing at the highest rate since the beginning of the millennium.

As of March 2024, the average property price in the UK is now valued at £285,009 – 14% higher than in 2021.

Depending upon where you choose to invest in property, you could even see higher returns.

In Liverpool, for example, property prices have skyrocketed by 7.19% over the last years, with other areas in the North West like Manchester seeing even higher growth.

In fact, the North West region is expected to see up to 11.7% growth over the next five years and 6.2% in the UK overall by 2027. With this in mind, it’s clear that long-term investors could be set for impressive gains in the future.

Conclusion

The UK property market has showcased its resilience and reinforced its position as a robust investment option in recent years. The upward trajectory of house prices, augmented sales volumes, and a growing supply of properties reflect the market’s stability and attractiveness.

One of the key factors that contribute to the strength of property investment is its physical nature. Unlike other investment classes, property exists as a tangible asset, providing a sense of security and stability. The demand for housing remains consistently high, ensuring a steady stream of potential tenants or buyers, even during uncertain times.

Moreover, the ability of the property market to weather challenging periods further solidifies its appeal.

Despite economic fluctuations, property values tend to hold up well over the long term. This resilience can provide investors with peace of mind, knowing that their investments have the potential to deliver stable returns.

While uncertainties may arise in any investment market, property continues to demonstrate its reliability. The combination of its physicality, consistent demand, and endurance through tough times sets it apart from other investment options.

For those seeking secure and consistent returns, the UK property market remains one of the most attractive avenues to explore.