Close this search box.

UK Property Market Growth Is Booming In 2024

May 1, 2024

Share to: 

Key Highlights

  • The UK property market always could endure, making it attractive for investors. 2024 has ushered in signs of growth, signalling a positive change in the market.
  • Rental yields have stabilised, property prices are slowly increasing, and rental value is stronger than ever.


Spring has long since symbolised growth, new beginnings, and transformations. That couldn’t be truer for the UK property market. After experiencing some setbacks in the past couple of years, the market is enjoying a boom, with prices rising rapidly back to pre-2022 levels.

Currently, the housing market is having a sales boom with a massive increase of 12% in agreed sales compared to the same period last year, according to Zoopla. It comes as welcome news after a slew of falling prices, a drop in buyer’s interest, and falling rates of secured property deals. 

The reason for this boom in house sales? Experts are putting it down to renewed buyer confidence and more homes appearing on the market. Other reasons for this bounce back of the UK property market are mortgage rates have fallen, as well as there being a better and wider choice of properties for sale.

2023 Vs 2024

The UK property market saw a lot of turbulence and fluctuations throughout 2023. This was impacted severely by a disastrous “mini-budget” in 2022, which had untold effects on the property market and the UK economy as a whole.

Skyrocketing inflation forced The Bank of England to raise interest base rates to the highest level not seen since the 2008 fiscal crisis. This of course had a huge impact on mortgage affordability. The average mortgage rate went up to 6% in some cases, severely deterring homebuyers from getting on the property ladder. 

The UK’s real estate investment capacity for the year 2024 hit £34.3 billion, according to statistics from Real Capital Analytics. This represented a decline of 47%, meaning that 2023 was the weakest year for investment, including property investment, since 2009. For the property industry, this meant that there was a large gap between buyers and sellers. It is this gap that has affected growth in house prices for the first part of 2024.

It is clear that recent years have been a rocky period, but towards the end of 2023, inflation had fallen further than expected. This has resulted in mortgage lenders offering lower interest rates, attracting more investors and homebuyers who were initially put off by the soaring rates.

UK Property Market Growth Statistics

In the report from Zoopla, the number of property sales agreed rose by an incredible 12% compared to the same period last year. This figure refers to completed sales rather than advertised or approved prices. This fantastic rise is particularly notable, as this is at a time when the annual mortgage cost for an average home buyer is 61% higher than 2021 rates.

When it comes to various locations in the UK, it is London that is currently experiencing some of the most successful sales. London is also enjoying a stark increase in property prices, especially when compared to the rest of the country. This spells good news for investors who are looking towards London to invest or already have property there, as capital appreciation in the capital continues to be strong.

While actual physical sales of properties have increased in the past four months, heralding a positive change to come, when we look at house prices the situation is slightly different.

The UK house price index shows a slightly different situation for house prices; the average house price remains low compared to peak years in the past. In spring, the UK house price rose by just 0.2%. While this might seem insignificant, it heralds the sign that positive changes are on the way. 

According to the latest house price data, the average UK house price in different locations in the UK has been increasing slowly but in a stable way. According to the Office for National Statistics, the average UK house price decreased by 0.2% in the past 12 months to February of this year, which is up from a decrease of 1.3% from January 2023 to January 2024. It shows that house prices are increasing, just at a slower yet steady rate as the UK property market recovers. 

The UK Property Market And Property Investment

What does all of this mean for the property investment world?

Traditionally, there is always a surge in the housing market in spring, though this year it was slightly delayed. The growth has been more noticeable at the end of April.

Buyer and seller numbers have increased by a huge margin. Despite this, demand still outweighs supply, giving sellers more leverage when it comes to pricing negotiations. This is a fantastic caveat for property investors looking to sell their properties at a larger profit.

Structural and demographic growth has been seen in the property investment sector, with change particularly notable in the build-to-rent sector. The supply and demand imbalance is currently pushing rental prices up across the country. Prime yields for these types of properties in London and other major cities did experience small setbacks in 2023, though this has been offset by the huge surge in rental value.

What does this look like in figures? Well, transactional costs for this sector totaled an incredible £4.3 billion in 2023, outstripping 2022 levels by a total of 10%, according to data from the CBRE. The majority of this can be attributed to single-family housing units, which has been a large part of growth for the build-to-rent and off-plan sector in the UK, amounting to almost half of all investments throughout 2023.

Overall, the property investment sector has managed to weather a lot of storms and come out of 2023 largely successful. It is expected that it will remain and become more positive throughout the rest of 2024, with yields stabilising and rental values continuing to rise.

Rental Price Growth

While there is some market recovery, the rate of those buying homes for themselves is still comparatively quite low to pre-2022 levels. While there are fewer people overall purchasing homes for themselves, this means that the rental demand is still incredibly high.

As of April 2024, according to the Office for National Statistics, the average UK private rental costs increased by 9.2% in the 12 months to March 2024, up from 9.0% in the 12 months to February 2024. This means that the average monthly rent increased to £1,285 across the UK. In England, the highest percentage of private rental cost inflation in this period was in London, which stands at 11.2%.

This is good news for investors who are renting out to tenants on a long-term basis or looking to rent out their properties long-term. 

Lowering Interest Rates

With buyer confidence renewed and the economy starting to recover, it is expected that UK inflation will further throughout 2024. Interest rate cuts are expected to happen in the summer of this year, making it more attractive for investors to start purchasing properties.

Lower House Prices

Investors can lock in a great deal by purchasing property now, with the idea that the UK property market will soon fully recover and property prices will continue to rise. This ensures strong capital appreciation and the ability to make a large profit margin upon selling the property.

Stabilised Rental Yields

One of the more tumultuous parts of 2023 for investors was rental yields. Mortgage rates had increased, leaving landlords short of monthly profits. However, lower mortgage rates, rising property prices, and more has managed to stabilise yields for 2024.

Off-Plan Property Investment

Looking to invest in property but concerned about the market? One of the best ways to invest in property right now is to purchase off-plan property.

Off-plan property developments that have not yet been completed allow property investors a great opportunity to appreciate wealth and avoid high-interest rates. Why? Investors do not have to pay mortgages or interest rates on their properties until the property is complete and ready for tenants to move in.

This means that currently, investors can lock in a great off-plan investment opportunity today and not have to pay anything beyond a deposit until the property is ready for completion which may take some time. In the interim, the UK economy will have hopefully recovered and the property will have strongly appreciated in value by the time the development is finished. This means that investors can avoid high base rates, expensive mortgages, and net profit during a turbulent economic time.

At North Property Group, we are a property investment agency that specialises in off-plan property. For more information on us and how we operate, check out our landing page here to find out more about the services and opportunities we have on offer.


North Property Group is a property investment agency and lettings agency with a focus on premium, off-plan real estate in the UK. We secure exclusive deals with some of the best developers operating in the country to deliver the best deals to investors. Spread over three cities and four offices, we have properties all across England.

We can offer financial advice and guide you through a range of investment options, as well as help you manage your investments’ lifecycles, from purchase to selling. We also provide a lettings management service. Book a free consultation with us today to start your journey in investing in the UK.

Share to: 

Explore our property in Manchester

The Bailey

From £249,950

Yield: 13.5%
   In Construction
   Est. Q4 2024
   Lease Length: 250 Years

Related Articles

Co-op Live: An Addition To Manchester’s Famous Nightlife

Co-op Live was finally open this week, after a period of cancellations and uncertainty, to join Manchester’s famous nightlife.
Read More →

Why Liverpool Has Become An Investment Hotspot

Here’s why billions of pounds are being invested into Liverpool, including the coveted L1 postcode and the revitalised Bramley Moore Docks.
Read More →

The North West Property Market Is Outperforming The UK

The North West property market is outperforming the rest of the UK property market, outstripping London and the South East. Here’s why.
Read More →

Why You Should Invest In Off-Plan Property

Here's a few reasons on why you should make your next property investment a UK off-plan property, including tips on how to get started.
Read More →

UK Property Market Growth Is Booming In 2024

The UK property market always could endure, making it attractive for investors. 2024 has ushered in signs of growth, signalling a positive change in the ...
Read More →

Why Salford Is A Regeneration And Investment Hotspot

Why Salford has become the North West’s newest and most exciting regeneration and investment hotspot, covering MediaCityUK and Salford Quays.
Read More →

Come talk to our professionals to learn more about the UK property market now!

Learn more about investing in Manchester by downloading our guide today