The UK property market is proving to be quite resilient, with average asking prices hitting a record high of £377,182 in April, according to Rightmove's latest data. This is a major £5,312 increase compared to last month — a 1.4% rise that beats the typical growth we usually see in April.
This price increase comes even after recent stamp duty changes in England and Northern Ireland that started on April 1st. Despite this, investor confidence seems to be soaring, especially in areas outside of London, indicating a strong belief in the market's long-term potential.
Why This Price Increase is Important
For overseas investors, these figures clearly reflect a property market that is steadily increasing in value, particularly in the Midlands, northern England, Wales, and Scotland. These regions are experiencing a rise in buyer demand each year, surpassing the more expensive areas in the South East and South West.
London, while traditionally attractive to international buyers, is showing mixed signals. On one hand, inquiries from buyers have dipped compared to last year, but on the other hand, average asking prices have shot up to £699,200, primarily influenced by sales in inner London. Analysts suggest that London’s high sensitivity to global economic changes, like shifts in US trade policy, could lead to more pricing fluctuations compared to other UK areas.
Mortgage Rates and Opportunities for Investors
On a positive note for buyers, mortgage rates have been slowly dropping. Major lenders, including Barclays, are now offering rates below 4%. If the Bank of England decides to cut the base rate further — a move some experts foresee — borrowing could become even cheaper in the next few months.
With lower mortgage rates and great rental yields in regional cities, there’s a promising environment for overseas buyers focused on yield-based or capital growth strategies. For instance, properties like The Crown in Andover — recently emphasized by Magnate Assets — are available from just £33,999, presenting opportunities for up to 16% rental yield and solid appreciation potential.
Market Conditions: Supply, Demand, and a Bit of Caution
According to Rightmove, the number of properties available on the market is at a 10-year high, giving buyers more options and increasing competition among sellers. Because of this, setting realistic asking prices is important. Homes that are priced correctly from the start are statistically more likely to sell quickly.
Interestingly, despite the changes in stamp duty, the rate of sales falling through has stayed the same. There’s been no major increase in cancellations from first-time buyers or home movers who might have missed the deadline, which is a good sign that the market is still relatively stable and committed.
Regional Insights and What Investors Should Consider
For investors looking into UK property, markets in the Midlands, North, Wales, and Scotland are performing impressively. These regions are drawing more buyers, generating stronger yields, and experiencing greater demand growth compared to Southern areas.
While London remains appealing for long-term capital growth, it might see more fluctuations due to its global exposure. Nevertheless, making strategic investments in outer boroughs or regeneration areas could still represent good value.
Final Thoughts for Investors
The UK property market is holding its ground, despite regulatory changes and global economic fluctuations. For overseas investors, now might be a wise moment to jump in or expand their UK property portfolios — especially in regional markets that are growing quickly, more affordable, and offering attractive rental yields.
If you’re interested in exploring current investment opportunities in the UK, reach out to the Magnate Assets team for customized property deals that align with your investment goals.