​​​The UK property market showed stability in Q3 2024, with steady price growth and an increased stock of homes available for sale, driven by favourable economic indicators and shifting buyer dynamics. Affordability constraints and regional variations persist, but opportunities are emerging in key cities. Here’s a breakdown of market trends in Q3 and what’s on the horizon.​​ 

​​​General Market Overview​​ 

​​​In Q3, house prices in the UK grew modestly, with a national inflation rate reaching 0.7% in August, rebounding from a decline in 2023. The average UK home price now stands at approximately £265,600, up slightly compared to previous quarters. ​​ 

​​​With mortgage rates stabilising at around 4.3% for a 5-year fixed mortgage at 75% LTV, buyer demand has strengthened, showing a 26% increase year-on-year. This boost in demand is further supported by a 23% rise in new sales agreed, indicating positive economic sentiment and improved confidence among home buyers.​​ 

​​​The ​​increased​​​ available property supply, up by 12% from last year, has also been instrumental in balancing the market. With more options available, buyers have the leverage to negotiate, leading to increased sales at reduced prices—around 37% of properties sold at a discount of 5% or more from the asking price. This trend reflects ongoing buyer price sensitivity despite overall stability in property prices.​​ 

​​​Looking at market sentiment, income growth of 4.5% in 2024 is expected ​​to improve affordability across the UK gradually​​​​. Additionally, a shift in the rental sector has led to a 12% increase in rental property sell-offs as landlords and second-home owners seek liquidity amidst changing tax and mortgage conditions. This influx of properties has not only bolstered stock for sale but has also helped stabilise prices in high-demand areas.​​ 

​​​Regional Insights: Opportunities in Key Cities​​ 

​​​Several cities are emerging as top investment destinations, with a strong mix of affordability, rental yield potential, and redevelopment initiatives that draw investor interest. Pillar-X’s current and investment areas Liverpool, Glasgow, Bradford, and potential investment area Preston, in particular, stand out for their current market dynamics and promising long-term growth.​​ 

​​​Liverpool continues to be a leader in rental yields, with an average yield of 8.5%, driven by regeneration projects like the Ten Streets Creative District. These initiatives, along with a year-on-year price increase of 8.9% and an average property price of £172,636, make Liverpool attractive to buy-to-let investors focused on long-term returns.​​ 

​​​Glasgow offers consistent growth backed by solid demand, especially in the rental market. The average property price in Glasgow stands at £173,331, marking an 8.5% increase year-on-year, while average rental yields are around 6.5%. The city’s strategic location, bolstered by infrastructure investments, supports its appeal for investors and makes it a reliable area for sustained rental demand.​​ 

​​​Bradford remains competitive for those seeking affordability and high rental returns, particularly with shared housing targeting students and young professionals. With an average property price ​​of ​​around £184,000, Bradford experienced a 6.7% rise over the past year, and rental yields remain strong at 7.5%, making it a favourable city for ​​value-added​​ property investments.

​​​Preston, which has Pillar-X’s eyes pinned on for our future, has emerged as a new hotspot for investment. The city’s recent developments, particularly the Stoneygate Masterplan and the Preston and Lancashire City Deal, have driven a surge in property prices by 21% year-on-year. These revitalisation efforts are drawing attention, and as housing prices rise, Preston’s potential as a future investment hub becomes increasingly attractive.​​ 

​​​Outlook for 2024 and Beyond​​ 

​​​Moving forward, the UK property market is anticipated to remain stable, with modest price increases and steady buyer demand. While mortgage rates are expected to hold around 4-5% through 2025, ​​aligning​​​ income growth with property prices may further improve buyer affordability. ​​ 

​​​As the market continues to adjust to economic shifts, opportunities in cities like Liverpool, Glasgow, Bradford, and Preston present appealing options for investors looking to leverage stable growth, competitive rental yields, and urban renewal efforts. Pillar-X is well-positioned to capitalise on the unique opportunities in these areas. ​​