The UK economy continues to recover following a pandemic, global economic events and the Liz Truss mini-budget.
Inflation fell to 4.6% in October, the lowest rate in two years per ONS data. As such, economists are increasingly confident that the Base Rate has peaked at 5.25%, which will continue affecting mortgage rates moving forward. That being said, it will take some time for interest rates to come down, with the Bank of England stressing caution with the national economy.
Continued low activity and property price decline should be expected for the time being. A RICS survey showed decreasing demand in October, which is currently lower than supply, prompting sellers to lower asking prices to achieve a sale.
The UK home supply returned to pre-pandemic levels in the latter months of 2023. The number of properties for sale in November was 34% more than the previous year, per Zoopla.
With mortgage approvals increasing slightly in October, we have seen increased asking price discounts. Zoopla said the average discount was 5.5% in November, up from 3.4% in the first half of 2023.
This may be good for property investors looking to get into the market at the moment, as the supply and demand imbalance in the buyer’s market means bargain property investments are available. However, as the market continues its march towards stability, expect those prices to go up sooner rather than later.
If you are interested in buy-to-let investment, check out our guide on how to get into property investment.
