December Market Update

November kicked off with a reduction to the Bank of England base rate from 5% to 4.75% but did it settle post-Budget nerves? The data is in and here are 11 things we learnt about the property market in November.

1) Encouraging key metrics: Rightmove’s November House Price Index revealed growing optimism in the sales market. The number of sales agreed is running 26% higher now than in November 2023, with a 6% rise in new sellers coming to market.

Average house price nudges upwards

2) Just below £300,000: the latest Halifax House Price Index revealed house prices continue their upwards trajectory. A 0.2% increase is marginal but the cumulative effect is an annual increase of 3.9%. A typical home now costs £293,999.

National Park premium uncovered

3) Picturesque locations are price winners: a new survey by Nationwide set out to prove whether homes within National Parks commanded a price premium. The results were conclusive. Properties for sale within National Parks can fetch up to 25% more. Even homes within 5km of a National Park can sell for up to 7% more than similar properties elsewhere.

4) Neurodivergent buyers thwarted: a new report released by Zoopla revealed 64% of neurodivergent homeowners had abandoned plans to buy a property. Half said this was due to the process being too complex. As a result, Zoopla and The Brain Charity have collaborated to produce a guide for neurodivergent homebuyers.

5) Pubs and property do mix: when the Long Live the Local campaign commissioned research into what features were important when moving, it found a neighbourhood watering hole was a top priority. Of buyers and renters who were questioned, 39% ranked a good local pub as the most important aspect, beating local schools (30%), places of worship (15%) and the gym (18%).

6) Leasehold reforms some way off: with other property matters taking priority, the Housing Minister admitted the Leasehold and Commonhold Reform Bill would not be introduced to Parliament until the second half of 2025. Realistically, reforms will not pass into law until 2026.

Buy-to-let yields inch upwards

7) Growth for landlords: when mortgage data for buy-to-let purchase and remortgaging was analysed by Paragon Bank, it found buy-to-let yields had increased. The average yield reached 6.72% in September 2024, with the best yield reserved for Houses in Multiple Occupation (8.34%).

8) Chain-free homes emerging: landlords who are leaving the buy-to-let sector are thought to be behind a rise in the number of chain-free homes. Zoopla says 32% of properties for sale on its platform are chain free. Specifically, 41% of two-bedroom homes are currently available with no chain.

9) Scottish rent controls changing: as the Scottish Housing Bill works its way through Holyrood, amendments are being tabled. One is an alteration to the value of rent increases applied to homes in rent control areas. The proposal is for this to be between CPI (Consumer Price Index) + 1% and CPI + 6%.

Home heating in the spotlight

10) Gas boiler days are numbered in England: the Government wants to cut carbon emissions quickly and a change to the heating specification in new build homes will help achieve this. A Future Homes Standard announcement is expected in May 2025, when Labour is expected to announce a gas boiler ban in newly built homes by 2027.

11) Wood burners win a reprieve in Scotland: the Scottish Government has backtracked on its pledge to ban the installation of wood-burning stoves in newbuild homes or conversions. The New Build Heat Standard will allow "the installation of bioenergy and peat main heating systems - and any type of secondary heating systems".

If you would like to know more about your local property market, please get in touch.