Latest Property Market Update: June 2024

Published: 30/05/2024

With headlines in the news about stagnating house prices and rising mortgage rates, May has been a challenging month, with the cost-of-living crisis still biting homeowners. However, it’s not all doom and gloom! Owning a home is still beneficial, offering long-term living and financial stability.

General Election News!

Prime Minister Rishi Sunak has announced that we’re heading to the polls on Thursday, July 4th, 2024.  With inflation nearing the Bank of England's target and a potential interest rate drop on the horizon, things are looking up. Expect a busy second half of the year for property deals!

How Can First Time Buyers Get on the Property Ladder?

The end of April saw the release of the BSA (Building Societies Association) report which confirmed that first-time buyers currently face challenging conditions to get onto the property ladder, with an increasing reliance on the Bank of Mum and Dad, or having two high incomes.

It’s not hard to see why more young people are opting to move back in with their parents, with this now being the most commonly reported living arrangement for those aged 18-34. This is in stark contrast to the figures for 1997 which showed that those in the same age bracket were most likely to be living as a couple with children!

Many first-time buyers are undeterred though, with recent Bank of England figures showing that over the past three years, over a million mortgages extending beyond the state pension age of the borrower have been taken out. Many of those loans have been approved for applicants under the age of 30 as high mortgage rates lead people to opt for extended repayment periods to keep their costs affordable.

Twice the number of homeowners under 30s with ultra-long mortgages can be seen today when compared with two years ago, while the number of under 40s has also seen a 30% increase. It’s also clear that first-time buyers are adapting to higher borrowing costs by targeting smaller, more affordable properties. This adjustment is helping to maintain activity levels in the market with a steady flow of new buyers entering the market.

Base Rate Held at 5.25% - Rate Cut Expected

The Bank of England most recently held the base rate at 5.25%, despite predictions that there would be a cut.

However, a rate cut is expected, followed by further cuts later in the year. That’s the good news!

In more good news, the Office for National Statistics (ONS) has announced that the rate of inflation dropped to 2.3% in April, its lowest level in almost three years.

The Rental Market - A Month of Ups and Downs!

May 2024 was a month of ups and downs in the UK lettings market! The rental market in Wimbledon, Raynes Park, Morden, Colliers Wood, Merton Park, Motspur Park, West Wimbledon and Tooting remains strong, with high demand pushing average rents to record levels which is positive for landlords and investors. However, some tenants are still struggling with the impact of the cost-of-living crisis and its knock-on effect on the number of homes available to rent.

This month’s report reveals that since the start of the year, the number of tenants in arrears has been falling, and has now reached a low point of 2.5%, indicating that landlords can start to breathe a sigh of relief and look forward to less frustration over rent collection.

Did You Know?

This year we are already seeing increased demand for sustainable homes. Energy-efficient features and eco-friendly designs are becoming more sought-after, alongside smart security, energy management tools and automated heating systems.

View all our properties for sale and to let here!

We are delighted to bring you our property market updates each month. If you are thinking of buying, selling or letting a property in Wimbledon, Raynes Park, Morden, Colliers Wood, Merton Park, Motspur Park, West Wimbledon and Tooting, please get in touch with us at Ellisons on 020 8944 9494 or email