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Private Rent and House Prices, UK: April 2024

ended 17. April 2024

This morning at 09:30, the Office for National Statistics published its Private Rent and House Prices, UK: April 2024 report. Among other things, it showed average UK private rents increased by 9.2% in the 12 months to March 2024, up from 9.0% in the 12 months to February 2024, and the highest annual percentage change since the UK data series began in January 2015. It also revealed average UK house prices decreased by 0.2% in the 12 months to February 2024 (provisional estimate), up from a decrease of 1.3% (revised estimate) in the 12 months to January 2024. Newspage asked mortgage and property market experts for their views, below.

5 responses from the Newspage community

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Dariusz Karpowicz
Director at Albion Financial Advice
Though prices are still in the red on an annual basis, the residential market is bustling this year compared to last, with an uptick in transactions and demand much stronger. Sadly, rents are also rising sharply, driven by landlords grappling with higher mortgage costs. Many landlords are choosing to exit the sector rather than hike rents steeply or absorb costs themselves. To enhance buyer sentiment, targeted financial incentives or support measures could help, as well as increased housing supply to alleviate tenant challenges. For 2024, expect rents and house prices to continue their ascent. The anticipated first rate cut from the Bank of England could be crucial, potentially easing some of the financial strain on buyers across the property market. But that first rate cut may not come for some months yet.
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Katy Eatenton
Mortgage & Protection Specialist at Eatenton Finance
This data highlights the immense pressure tenants are under. Rising mortgage rates have meant many landlords have had no choice but to increase rents. The data also shows a slight recovery in the purchase market, which may be a result of lower mortgage pricing at the end of 2023 and early 2024. The significant drop in prices some predicted has yet to materialise, and is unlikely to. This is mainly due to lack of stock or vendors having no urgency to sell, meaning they are content to wait for the price they want to achieve. I have seen a lot of landlords selling up as high mortgage rates, coupled with new taxation rules, means any profit being made is eaten up by the tax owed. Rates need to come down hard and fast to reignite the amazing start to 2024 we had.
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Justin Moy
Managing Director at EHF Mortgages
Since January, there has been a definite slowdown in buyers in the market, although those still looking seem more determined to buy and are better prepared overall. Confidence is sharper among those buying higher-value properties. In contrast, traditional first-time buyers are more nervous, looking not only for mortgage help but more property advice at the same time. A base rate cut will lift the mood for all homeowners and first-time buyers but the prospect of one before the summer is rapidly diminishing. A further slowdown of the market is inevitable.
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Gary Bush
Financial Adviser at MortgageShop.com
In our experience, demand has been improving steadily in recent months among both first-time buyers and home movers. Though it's certainly not 2021, there is a lot more desire to get onto the ladder and move home than there has been for some time. Pent-up demand from 2023 has got a lot to do with this, along with people getting used to the new norm for mortgage rates. All eyes are now on Threadneedle Street and that first rate cut. Sadly, following this morning's smaller than expected fall in inflation, that may take a bit longer to arrive.
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Ross McMillan
Owner/Mortgage Advisor at Blue Fish Mortgage Solutions
The Scottish market continues to shine, notably in Glasgow and Edinburgh, where prices remain robust amid fierce competition. While supply remains tight, there have been emerging signs of price reductions, signalling buyer resistance to inflated valuations and over ambitious seller expectations. Moderate growth in prices during 2024 remains most likely. Influenced by ill-considered Scottish government interventions, the rental market in Scotland has witnessed eye-watering and above-average increases in rents in recent years. However, with these unnecessary restrictions easing slightly in recent weeks, there's hope and some clear signs of more calm and stable times ahead, offering relief and certainty to both tenants and landlords alike. A Bank of England rate cut would inject optimism and pave the way for a dazzling summer, whatever the weather may throw our way.