Snapshot highlights:
• House prices increased by +0.8% y/y increase in Q1, the largest quarterly increase since Q4 2022.
• Despite recent coverage of some banks reducing mortgage interest rates, overall rates continued to ascend since the beginning of February. The average 85% loan-to-value rate is just under 5% on a 5-year fix. Those looking to re-mortgage or buy a new home are pinning their hopes that the Bank of England’s Monetary Policy Committee (MPC) will decide to cut rates at their June meeting. It is hoped, this will then be interpreted by forward-looking lenders as a strong sign of a future trend of cuts.
• Rental growth accelerated further, standing at 6.8% y/y in Q1 2024. This is an increase from 6.3% y/y in Q4 2023. This highlights the urgent need to build more rental properties in the UK as unaffordability is an issue for many renters.
• The PMI’s Residential Activity Index averaged 48.0 in Q1 2024, the highest quarter since Q4 2022. This shows that despite delivery of new housing stock being slow, it is improving.
• The rate of rental inflation may have stabilised as it hit 6.3% y/y in Q4 2023, a small decline from 6.4% y/y in Q3 2023
Read the report here
• House prices increased by +0.8% y/y increase in Q1, the largest quarterly increase since Q4 2022.
• Despite recent coverage of some banks reducing mortgage interest rates, overall rates continued to ascend since the beginning of February. The average 85% loan-to-value rate is just under 5% on a 5-year fix. Those looking to re-mortgage or buy a new home are pinning their hopes that the Bank of England’s Monetary Policy Committee (MPC) will decide to cut rates at their June meeting. It is hoped, this will then be interpreted by forward-looking lenders as a strong sign of a future trend of cuts.
• Rental growth accelerated further, standing at 6.8% y/y in Q1 2024. This is an increase from 6.3% y/y in Q4 2023. This highlights the urgent need to build more rental properties in the UK as unaffordability is an issue for many renters.
• The PMI’s Residential Activity Index averaged 48.0 in Q1 2024, the highest quarter since Q4 2022. This shows that despite delivery of new housing stock being slow, it is improving.
• The rate of rental inflation may have stabilised as it hit 6.3% y/y in Q4 2023, a small decline from 6.4% y/y in Q3 2023
Read the report here
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