High Demand and Record-Breaking Sales Activity
This year has set new records for home sales, fueled by lower mortgage rates and heightened demand. As of November 2024, a remarkable 306,000 homes are under contract, marking a 26% increase compared to last year. This spike represents the most robust sales pipeline since late 2020, with the total value of homes in the UK sales pipeline now reaching an impressive £113 billion—a 30% rise from 2023.
These trends indicate strong market confidence and suggest continued momentum through December 2024 and into early 2025, especially as first-time buyers and existing homeowners drive demand.
House prices across the UK have shown a modest 1% growth over the past year. This stability reflects a well-balanced market where high buyer demand meets the availability of homes, aligning prices with what buyers can afford. Zoopla forecasts that average house prices will experience a 2% increase by the end of 2024.
For investors, this modest growth highlights the UK property market’s resilience, presenting a steady landscape for investment without the volatility seen in previous years.
Regional variations continue to play a major role in the UK housing market. In 2024, certain regions outpace others in terms of price growth and market activity. Here’s a breakdown:
The North West, in particular, remains a key growth area for property investment, with strong rental demand and price increases above the national average. By investing in high-demand regions like the North West, investors can leverage opportunities for both rental income and long-term capital appreciation.
On the other hand, the Eastern (-0.3%) and South East (-0.1%) regions have seen slight declines, highlighting the importance of strategic location choices in property investment.
The UK’s national sales pipeline is at its highest level in four years, suggesting sustained market activity heading into 2025. Here are some of the highlights:
For investors, this strong pipeline indicates a healthy market with abundant opportunities, especially for those interested in property-backed investment options that benefit from market stability.
The diverse buyer profile in 2024 is one of the most interesting aspects of the UK housing market. Here’s a closer look at the primary buyer groups:
For property investors, this shift in buyer demographics points to increasing demand from first-time buyers and cash buyers, reinforcing the importance of understanding market dynamics and regional demand.
An important shift in 2024 is the relative affordability of buying versus renting. According to Zoopla, first-time buyers are now paying 17% less on mortgage repayments compared to renting—a significant improvement from just 2% last year. This change is expected to fuel continued demand from new buyers, as owning a home becomes increasingly cost-effective in comparison to renting.
The 2024 UK housing market shows steady growth, strong demand, and a robust sales pipeline, making it an attractive option for property investors seeking secure, asset-backed opportunities. At APG Capital, we focus on high-growth areas like the North West, providing our investors with access to stable returns through carefully selected projects in promising regions.
If you’re interested in learning more about APG Capital’s approach to property investment in the current market, contact us today to explore our latest opportunities.
With over 15 years of experience, APG Capital has the expertise and market insights to help you navigate the UK property market. Our portfolio offers fixed-income loan notes, project-based investments, and buy-to-let options tailored for both income and growth.
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