Surge in Property Listings

January 2025 has seen a significant rise in property listings, marking the largest increase since September 2020. The Royal Institution of Chartered Surveyors (RICS) reported an index reading of 25, indicating a strong influx of new properties into the market.

Key Factors Driving the Surge:

• The Bank of England’s series of interest rate cuts since August 2024 have lowered borrowing costs, leading to more mortgage approvals.

• Estate agents across the country report a strong start to the year, with increased new instructions from sellers.

• Despite slightly slower agreed sales, the higher number of available properties per branch suggests a more balanced market for buyers.

Competitive Mortgage Rates Driving Buyer Interest

The Bank of England’s interest rate reductions have intensified competition among lenders, leading to more attractive mortgage deals.

Notable Market Moves:

• Santander has introduced two-year and five year fixed rate mortgages at 3.99%, marking the first sub 4% mortgage rates since November 2024.

• Barclays and other high-street banks have also launched similar low-rate mortgage products, signalling a shift towards cheaper borrowing costs.

• However, affordability remains a concern, as high property prices and associated mortgage fees still create barriers for some first-time buyers.

Implications for First-Time Buyers

Affordability continues to be a significant concern for first-time buyers. The “Bank of Mum and Dad” has become an increasingly vital resource, providing £9.4 billion in 2023 to assist children in purchasing homes - nearly double the amount from five years prior. This trend underscores the financial hurdles faced by new entrants into the housing market, exacerbated by high property prices and substantial deposit requirements.

Insights from Dev Singh, Co-Founder of Apex Invest

Dev Singh, Co-Founder of Apex Invest, offers his perspective on the current market dynamics:

“The recent increase in housing stock, coupled with improving mortgage rates, presents a unique window of opportunity for buyers and investors alike. While affordability remains a challenge for first-time buyers, investors who act strategically can make the most of the current market conditions.

At Apex Invest, we are committed to helping investors navigate these market shifts, ensuring they identify the right opportunities and make informed, data-driven decisions in this evolving property landscape.”

Key Considerations for Property Investors

As the UK property market adjusts to these economic shifts, investors should:

• ✔ Monitor Interest Rate Trends - Understanding the Bank of England’s future monetary policy will be key in predicting market movements.

• ✔ Assess Mortgage Options - With increased competition among lenders, securing a favourable mortgage rate will be critical.

• ✔ Take Advantage of Increased Property Listings - A wider selection of properties may provide better value investment opportunities.

By staying informed and adapting investment strategies, buyers and investors can capitalise on current market conditions and make well-informed property decisions.

Stay tuned for more UK property market updates in our next News article.

Back Links/Tags:

The Times - https://www.thetimes.com/business-money/economics/article/bank-of-mumand-dad-hands-out-94bn-to-help-children-buy-a-home-9wl3jfgpn?

Financial Times - https://www.ft.com/content/fb998c49-ae56-4e33-94dc-3f9b40d1a6e6?

The Sun - https://www.thescottishsun.co.uk/money/14326180/santander-launches-firstmortgage-under-4-2025-rate-battle/?