August has seen many changes in the property market which have impacted the UK in a variety of different ways. e. The hotel sector and rural properties are experiencing a boost thanks to the popularity of staycations and benefits of better connectivity respectively. An increase to the Bank of England base rate has had some implications for homeowners and mortgage costs, although finance markets predict that the base rate will reach its peak in early 2024 and begin to stabilise. So, depending on where your interests and investments lie, this month could spell positive news or impact your property decisions for the coming year.
Seasonal demand paired with high inflation has been a recipe for success for the hotel sector. Statistics suggest that occupancy is on the rise, with regional UK hotels achieving an 81% occupancy rate this season, which is 4% higher than last year. This is likely a result of financial pressures on the vast majority of the population, as well as heat waves in mainland Europe, encouraging us to embark on ‘staycations’.
Landlords in the short-term lets market can also benefit from this surge in demand for ‘staycation’ properties, with the average nightly rate in some parts of the UK increasing by as much as 50% since 2020.
It is also important to note that hotel and Airbnb businesses are likely experiencing higher profits due to a reduction in energy expenditure. This also bodes well for landlords in the residential rental sector that offer bills-included tenancies, with a reduction in outgoings for hoteliers and landlords alike increasing profits.
According to research, the greatest advancement yet to come in the rural property sector is the increase in availability of broadband access. The Virgin O2 report focuses on the ‘great rural revival’ and believes that through better digital connectivity rural regions could benefit from an economic boost of £12 billion. Greater connectivity is also projected to produce 284,000 jobs across the UK in rural areas which is sure to have a tangible impact on the rural housing sector. Should rural connectivity improve, Centrick anticipates that demand for countryside properties will see a resurgence as more businesses and their employers vie for rural business hubs, accommodation and homes.
For more information on land and rural property, be sure to explore our latest Quarterly Land blog here.
This month, we unveiled our annual property predictions covering sales, lettings and new homes. The Property Market Predictions for 2024 guide allows you to explore our forecasts for the year ahead so that you can plan your next move or investment accordingly. We combined insider opinions and rigorous research into one accessible guide. In the piece, we cover a number of hotly contested topics including…
For the comprehensive list of predictions, download the UK Property Market Forecast 2024 by clicking the banner below.
As anticipated, the Bank Of England increased the base rate by 0.25% to reach 5.25%. This is the highest the base rate has been since April 2008, and forms part of the Bank’s reaction to ever-increasing inflation.
Ultimately, this could have a tangible impact on those with existing mortgages or hoping to obtain one in the near future. Lenders will likely increase loan rates which in-turn could cause a rise in monthly mortgage repayments. People searching for a new home to purchase could see their affordability reduce as a result, and those currently paying a mortgage may find themselves paying more.
Inflation is starting to come down, which could see the Bank of England decide to reduce the base rate sooner rather than later. Sources predict that the rate will reach its peak in early 2024, before stabilising. The next decision for amending the base rate will come on September 21st.
For the first time in 13 years, renting has surpassed buying as the overall more affordable option for those across the UK. Monthly rent is now 9.5% cheaper than the average mortgage, meaning that renters are saving approximately £122 per month compared to their home-owning counterparts. This is mainly because of the aforementioned rise in the base rate which is driving mortgage prices up, making renting comparably cheaper.
However, there are still parts of the UK where renting is more expensive, namely in Scotland and the North of England. For those looking to purchase or rent in the Midlands where Centrick is proudly based, renting is only £38 more expensive per calendar month, making renting and buying almost equal in terms of their cost. As a leading property agent in Birmingham, Solihull and Nottingham, we are able to help buyers and renters across the Midlands find their perfect next home – get in contact with us below to find out more!
Every month, we bring you the latest property news hot off the press so that you don’t have to scroll through the seemingly endless onslaught of available articles. We’re dedicated to providing balanced advice and valuable perspectives to our client base, allowing you to make the best possible choices for your future. For more information on the property market, explore our News and Insights page, or fill out the form below.
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