UK Average Property Prices
According to the April data from the UK House Price Index, the average property value in the UK is £281,000, reflecting a decline from the previous value of £284,691 reported in December 2023.
However, Nationwide indicates that UK house prices have increased by 1.5% in June compared to the same period last year.
This quarter, the UK experienced an annual percentage change of 1.2%, while London saw a slightly higher annual percentage change of 1.6%.
Prime Central London
According to Savills, property prices in prime central London experienced a slight adjustment, decreasing by -0.4% in the three months leading up to the end of June and by -0.9% over the past year.
The recent tax changes affecting non-domiciled individuals are expected to have the most significant impact in prime central London, where those affected have been evaluating their options.
UK Buy To Let
According to Which, buy-to-let mortgage rates have slightly increased from 5.5% in February to 5.55% in July, significantly higher than the 4.31% two years ago.
UK Finance reports that Q1 2024 saw 41,149 new buy-to-let loans in the UK, totalling £7.0 billion, a 16.7% decline in number and 17.3% in value from the previous year.
The average interest rate for new buy-to-let loans in Q1 2024 was 5.40%. Buy-to-let mortgage lending made up 8.3% of total mortgage values in Q1 2024, down from 9.8% in Q1 2023.
UK Rents
According to UK Finance, the average gross buy-to-let rental yield in the UK for Q1 2024 was 6.88%, up from 6.23% last year. Rental yields were 6.72% in England and 5.75% in London.
Zoopla reports the average UK rent for new lets has risen to £1,226, a 6.6% increase over the past year.
Savills highlights a 2.8% rise in Prime Central London rents for flats and a 2.1% increase for houses in Q1 2024.
Our buy-to-let expert Mohammed Bazerbashi’s brief review:
“There has been a marked slowdown of the BTL market since late 2022, with key economic indicators being closely watched by industry participants.
Recent data suggests that the economic landscape could be evolving in a way that may make BTL property investment more attractive. For instance, the bank base rate saw a modest reduction of 0.25% recently, which might signal a trend towards lower borrowing costs. This could potentially increase the attractiveness of UK property investment for both resident and non-resident investors. Additionally, with inflation rates aligning with government targets, there could be further adjustments in the base rate, potentially stimulating more demand in the BTL sector.
In conclusion, as we move towards 2025, there are signs of potential shifts in the property market. While interest rates and economic conditions are evolving, the trends observed might influence market dynamics and investment opportunities.”
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This is a marketing communication. The information is provided on an “as is” basis with no guarantees of completeness, accuracy, usefulness or timeliness. Any opinions expressed should not be construed as advice. Please seek independent financial advice before making any decisions. National Bank of Egypt (UK Ltd is registered in England and Wales under company number 2743734 and is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority registration number 204520.