The UK property market experienced significant shifts throughout November 2024, marked by major changes in government policy, interest rates, geopolitical developments, and updated forecasts. These events have made November a pivotal month for property investors. This article will guide you through the key news from November and explore how your property investment strategy is impacted.
Interest Rates Decrease
The Bank of England has made a positive move by reducing interest rates by 0.25%, bringing them down to 4.75%. This marks the second rate cut of 2024, providing further support to the economy. While rates are not expected to decrease further for the rest of the year, Andrew Bailey, the Governor of the Bank of England, has assured that the outlook remains for gradual, steady reductions going forward.
With the promise of steady, gradual rate cuts, investors can look forward to a stable market environment. Homeowners will also benefit, with lower mortgage repayments for the 600,000 UK mortgages tied to the Bank of England’s rate. Additionally, over 80% of mortgage customers are on fixed-rate deals, meaning they are shielded from immediate changes but may see positive adjustments when their deals come to an end.
While the outlook for the impact of these changes is shaped by factors such as the 2024 Autumn Budget and global events like the US presidential election, the overall trajectory remains positive for both consumers and investors.
UK House Price Increase
According to Savills, house prices increased by 0.1% in October, contributing to an annual growth rate of 2.4%. This aligns with a positive market outlook, with Savills forecasting a 4% rise in UK house prices for 2025, indicating a promising boost in market activity.
Further positive news comes from the latest data from the Office for National Statistics (ONS), which reports an impressive 8% rise in the UK’s average house price. The cost of purchasing a home has increased by 2.9%, translating to an additional £8,000 compared to last year, reflecting strong demand and growth in the housing sector.
The 2024 Autumn Budget is expected to impact the continued growth in the housing market. The Stamp Duty threshold lowering in March 2025 is likely to stimulate an increase in property purchases before the change takes effect. While some investors may be cautious, those adopting a strategic approach will be well-positioned to thrive in this evolving market.
Read our article breaking down the 2024 Autumn Budget to learn more
US Presidential Election Impact
On November 5th, Donald Trump was nominated President-elect of the United States following a closely contested race against Kamala Harris. His election is poised to have a significant impact on the UK, particularly in the property market.
London’s property market is expected to experience an influx of American buyers, as recent spikes in Google searches for London properties from US residents indicate a growing interest in relocating. This could present an excellent opportunity for investors to sell properties to affluent Americans, potentially yielding substantial returns on investment.
President-elect Trump’s plans to impose tariffs on European nations may also have ripple effects on global markets. If the US Federal Reserve adjusts interest rates in response, it could drive more investments into the US. This may prompt the Bank of England to review interest rates to maintain the UK’s appeal for investors. Rising borrowing costs may signal an economic shift, creating potential opportunities for both investors and homeowners.
The UK’s Eco-Friendly Shift
Following the 2024 Autumn Budget, the Government is making a strong commitment to building more eco-friendly housing. With a target of constructing 1.5 million homes during their parliamentary term, Labour is ensuring that these homes will adhere to the latest eco-friendly standards, promoting sustainability and energy efficiency.
At COP29 in Azerbaijan, Prime Minister Keir Starmer announced the UK’s goal to cut emissions by 81%, paving the way for more energy-efficient building regulations and potential grants for off-plan projects incorporating sustainable features.
With 29 million homes in the UK needing retrofitting by 2050, investors have an excellent opportunity to protect their investments by ensuring their properties meet the latest energy efficiency standards. By being proactive, investors can save on future costs and align with the growing demand for eco-friendly living spaces.
Major lenders, including TSB, Co-op Bank, and Metro Bank, are now prioritising properties with modern, standard insulation, helping ensure long-term value and safety for homeowners. Over 250,000 UK homes were installed with spray foam insulation, many through the Government’s Green Homes Grant Scheme. Investors can benefit from ensuring their properties meet the current insulation standards.
With growing demand for eco-efficient homes, tenants are increasingly seeking properties that offer lower energy costs. By investing in energy-efficient upgrades, investors can enhance property value, attract more tenants, and future-proof their investments.
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Transport Improvements In Liverpool
Baltic Train Station £100M Plan Submitted
Liverpool’s £100m plan for the Baltic Triangle train station was officially submitted. This is a major part of Liverpool’s regeneration scheme and is part of the city’s plan to improve the public transport network across the city.
The station is slated to begin construction in 2025 and complete in 2027 or 2028. Other rail projects include the introduction of modernised trains and plans for three new stations across Merseyside.
This will further boost the already successful Baltic Triangle regeneration. With the area already a highlight of the city, implementation of robust transport links will only bolster the Baltic’s attractiveness.
£1 Billion Boost To UK Bus Services
UK bus services are set to receive a £1 Billion boost from the Department for Transport (DfT). The DfT has promised to deliver ‘London-style’ services across Britain, allocating different levels of funding according to deprivation and population.
Overall, there will be £712m for local authorities, and a further £243m for bus operators. Moreover, Liverpool City Region is set to receive one of the biggest allocations from the DfT. Around 400,000 people use the bus in Liverpool every day, and this will dramatically increase manoeuvrability across the city for people.
With the city’s accessibility and liveability expanding, properties across Liverpool will increase in demand and rise in value. Building upon the developing rail networks, the improved bus links will only enhance Liverpool’s reputation as a prime investment location.
Housing Reform And Regulation
Right To Buy Changes
The Government has proposed introducing measures to ensure more long-term security for council house tenants, with some facing longer waiting periods before being able to purchase their homes. This shift will help maintain a stable social housing sector, ensuring that more people have access to secure, affordable housing.
While the reduced availability of properties might limit options for buy-to-let investors, it also presents an opportunity to focus on areas where there is a healthy supply of properties.
Leasehold Reform
The Government is planning on reforming leaseholds. Through the Leasehold Reform Act, the Government plans to reshape how leaseholds work for everyone. Leaseholders pay ground rent and service charges to the freeholder and have a lease that determines how long they stay in the property before it reverts to the freeholder.
The reform will most likely introduce the abolition of marriage value, simplify the lease extension process, and regulate ground rents. It will also address important issues like building insurance and service charges, ensuring greater transparency and fairness for leaseholders.
Labour have promised to introduce this bill by the end of the current parliament. The Government will likely draft the bill and bring it into effect by 2029. The bill is likely to include elements of the previous Government’s 2024 Leasehold bill, which was passed but never enforced.
This reform is a win for both tenants and investors. Leaseholders will benefit from more affordable costs, boosting demand for housing as properties become more accessible. For freeholders, the act will ensure steady, predictable income and the potential for more stable, long-term returns, creating a more balanced and sustainable housing market for all.
November 2024 Property Market: Unlocking New Investment Potential
November 2024 highlighted key trends in the UK property market. While fluctuations in the market may unsettle investors, refinement of investment strategy should mitigate any negative impacts. Property investment in Liverpool has remained a strong option for investors, promising increased returns in the long term. With a wealth of options ranging from off-plan properties to completed buy-to-lets, Liverpool is an attractive option for property investors.
Contact one of our property investment experts today and we will help you navigate the UK’s property market and achieve your goals.
