“As we find ourselves enjoying warmer weather and looking forward to summer holidays, we can safely say that the property and mortgage markets have seen a significant improvement in the first half of 2024 compared to the previous 12 months.

 

“The year got off to a busy start in January with encouraging news about interest rates and a record number of new properties coming to market after the Christmas break. This provided great opportunity, choice, and confidence for buyers, whilst showing sellers that well-priced property would still attract plenty of interest and offers from interested buyers.

 

“After an initial cut in rates by most mortgage lenders in January, the long-awaited reduction of central bank interest rates was then put on hold as various economic data pushed expectations of when the Bank of England would be ready to cut the Base Rate back to the Summer of 2024. Over the Spring months however we saw mortgage lenders keep their rates stable and quietly innovating their criteria in an effort to help more borrowers move ahead with their plans. Lenders have remained keen to lend throughout the challenges of the last 21 months since the ill-fated mini-budget sent rates soaring, with price being the only barrier for borrowers, albeit a significant one. The availability of lending to those who can afford it hasn’t been a problem.

 

“In previous periods of economic uncertainty lenders would withdraw from the kind of lending which keeps the property market buoyant, such as helping First Time Buyers with small deposits. This never happened and in fact First Time Buyer numbers are stronger than ever, perhaps partly due to rising costs for those in rented. There’s plenty of choice for FTBs too, partly due to a significant number of landlords choosing to sell some of their portfolio in light of higher interest rates encouraging them to rebalance and de-risk their portfolios. This extra availability of traditionally FTB and investor type properties has provided great opportunities for buyers and we’ve also helped a number of tenants buy the property they’re renting from their landlord – sometimes with a discount from landlords who appreciate quality tenants.

 

“Looking to the future, economists are now predicting the first Base Rate cut in August and hopefully this will be a signal that we can start moving towards interest rates closer to 4% than 5% over the next 12 months, which will make a real positive difference to homeowners, businesses and the wider economy. Confidence is fuel for buyers and sellers alike and knowing that inflation is under control and lower interest rates are on the horizon should give many the confidence they’ve been waiting for to press ahead with their plans.

 

“Many are asking about the upcoming General Election and how that may impact the property market. Whilst it’s clearly something of great significance, historical data shows that the run-up and immediate aftermath of General Elections don’t generally show great peaks or troughs of activity or have a significant effect on prices. Neither main party is proposing anything significant regarding the property market, for now at least, so my advice would be not to let the Election cast doubt over moving plans. Most home-moves and remortgages take several months, so if there are any surprises on the horizon there’s time to adapt if needs be.

 

“We’re looking forward to the second half of 2024 and are cautiously optimistic that economic conditions will continue to show signs of stability and improvement, so if you’ve been putting off enquiring about that move, home improvement project or remortgage, there’s no time like the present.”