Key Highlights

As the curtain closes on 2024, the UK property market has proven itself resilient and full of opportunity once again. With a mix of government initiatives, economic shifts, and regional growth, this year offered plenty of opportunities for those looking in the right places. Let’s dive into the highlights.

Government Changes

In July 2024, the UK held a general election, where Labour took over government for the first time in 14 years, which brought a fresh focus to housing and economic stability. Their Autumn Budget prioritised sustainable housing and support for landlords and first-time buyers. Incentives for eco-friendly developments, alongside plans to increase housing supply, provided renewed confidence in the market. 

This did shake up the market. Investors are now turning towards new-build and off-plan properties to navigate upcoming EPC regulation changes and secure more eco-friendly investments. These properties not only reduce maintenance costs but also appeal more strongly to potential tenants, making them a smart long-term choice.

Interest Rates Drop

This year began with a base interest rate of 5.25%; in August, the Bank of England cut this to 5%, and again to 4.75% in November. This marked a significant shift from the challenging rate hikes of 2023. Mortgage rates followed suit, with many fixed-rate deals dropping below 4%. For property investors, this presented an ideal opportunity to finance purchases, and provided confidence to off-plan buyers to further rate drops in the not-too-far future. 

Regional Growth

House prices across the UK have spiked 1.2%, year-on-year from November. Certain regions drove this increase, such as the North-West and East-Midlands which held the biggest annual house price increases in England. 

With regeneration projects like Salford’s Phase 2 and frequent regeneration in smaller cities like Derby, investors are drawn to the North of England rather than the South. In the North-West, property values grew by 1.7%, way outpacing the national average. Rental prices in the area also saw one of the highest increases over the year, with an astonishing 7.7% year-on-year change. Figures like these, combined with record-breaking regeneration projects, are driving Manchester’s presence as one of the top investment hotspots in the UK.

A Strong Year for Rentals

The rental market had a stellar 2024, with rents increasing by an average of 5.2% across the UK (excluding London). Tenant demand far outstripped the available stock, particularly in major centres, driving growth. Greater London saw an increase of 2.5% in rental figures from last year, bringing the average to almost £2,700 pcm. Every region of the UK saw significant rises in rental figures this year, even despite such uncertainty in the market throughout the year. 

Why 2024 Was a Great Year for Property Investors

Falling mortgage rates, government changes and support, and growing rental demand made the market more accessible and profitable for investors. Cities undergoing regeneration, particularly Manchester, provided high returns, while a buoyant rental market ensured consistent income streams. 

As we head into 2025, the focus remains on sustainable growth and supporting new housing supply. Whether you’re just starting your journey or expanding your portfolio, 2024 proved that the UK property market remains one of the most reliable ways to build wealth. 

About Us 

North Property Group is a premium property investment agency and lettings agency focusing on premium UK real estate. We are a team of experts dedicated to finding you the best opportunities and guiding you through the investment lifecycle. We have in-depth knowledge of the property market and policy changes within the industry, so we can help guide and advise as the UK government unveils its new budget.

Book a free consultation with us today to start your journey of investing in off-plan UK property.