The State of Your Local Property Market: September 2024
September turned out to be a fantastic month for us! With house price growth hitting its highest level in nearly two years and mortgage rates continuing to fall, it’s a great time for both buyers and sellers to make their move.
On top of that, last weekend we proudly hosted our 4th annual Charity Ball in support of West Sussex Mind and Guild Care. The event was a wonderful success, bringing together a community of generous individuals and businesses. We also celebrated a huge milestone – Jacobs Steel is marking 40 incredible years of trading! It’s been a month full of achievements, and we look forward to continuing our success as we head into the autumn season.
Let’s dive into the key developments from September and explore what the remainder of 2024 might bring.
The current landscape
This month, Managing Director at Jacobs Steel, Pat Barton, gives us his insights on what’s been happening in the local property sales market throughout September.
Here’s what he had to say:
Despite some people remaining wary of the upcoming budget, the property market remains highly active. That said, there has been a noticeable decline in the number of properties coming onto the market this September, likely due to anticipation of what the budget will bring. Interestingly, the number of new homebuyers registering continues to rise month by month, showing strong demand for the properties that we do have available for sale. As a result, the number of sales agreed in September has surpassed August. Looking ahead, if these trends continue, we may see further market acceleration before the end of the year, despite external uncertainties.
Mortgages
We spoke to our in-house mortgage advisor, Adam Dumbrill, to hear his take on current mortgage rates:
We’ve seen mortgage rates drop below 4% for the first time in quite a while, with new options allowing first-time buyers to borrow up to six times their income. As we approach Q4, rates continue to decline as lenders ramp up competition, which is excellent news for borrowers, as it means lower monthly payments. Additionally, 2-year fixed-rate mortgages are becoming more affordable, with hopes that the Bank of England will lower the base rate in its next meeting.
The current Bank of England base rate is 5.00% as of 30th September 2024.
As of 30th September 2024, the current average mortgage rates are shown below (sourced from (https://www.uswitch.com/mortgages/) but we would also recommend speaking with an independent mortgage broker before committing to a product.
Rental market review
Ollie Whiting (MARLA), Lettings Manager at Jacobs Steel shares his thoughts on the September lettings market:
September has been a record-breaking month for Jacobs Steel in terms of move-ins, and the same can be said for Q3 as a whole, with over 85 new tenancies starting.
We have seen the rental market reach its peak in September, given the high level of activity we’ve seen throughout spring and summer. The steady stream of new properties being advertised, paired with strong demand from renters, has contributed to this surge.
Naturally with September coming to a close, the busy summer rental season is winding down. As we approach autumn and through to winter, we would expect the rental market to gradually settle, which isn’t necessarily a bad thing for landlords and tenants alike, as we’d still expect demand to remain consistent for the level of properties coming to market.
Commercial market review
Leigh Doherty, Commercial Manager, has an in-depth understanding of the commercial property market. Here’s what he had to say:
The road ahead
The outlook for the remainder of 2024 points to continued improvement in the property market, with mortgage rates expected to gradually decline, offering potential relief to buyers and those seeking to remortgage. However, the upcoming autumn budget may introduce uncertainty, particularly concerning possible policy changes that could impact the housing sector. Proposals to assist first-time buyers, such as extended fixed-term mortgage options and renewed government support schemes, could be on the horizon, potentially driving increased demand.
In conclusion, while challenges remain, the UK property market is heading towards greater stability. Falling mortgage rates and sustained demand are likely to create favourable conditions for both buyers and sellers, making this an opportune time to consider a move.
