The property market remains cautiously optimistic across Leicestershire and Warwickshire. Spring is always a time when people think of moving despite the recent damp weather we've been seeing of late.
Sale Prices
House prices in Leicestershire and Warwickshire have seen growth of up to 1.3% and 0.3% respectively year on year as we came into 2024, with a modest upward trend continuing as we come into Spring. This is better than England has been performing as a whole which is still seeing a small decline in prices year on year, with London and the South East showing the largest reductions keeping the average across the country down at -1.1% year on year.
Demand has been on the rise due to falling mortgage interest rates, although the rate cuts are now slowing as lenders await clearer signals on future interest rates.
Rental Market
The rental market has continued to see high growth, with annual rental growth in the UK at 8.3% in 2023. However, the growth rate has been decelerating compared to previous months. This suggests that while rental prices are increasing, the rate of increase is slowing down.
Forecasts
Consumer confidence in the property market has improved, reaching a two-year high in Spring 2024, but not yet back to 2022 levels. This is linked to reduced fears of a significant recession and a continued downward trend in inflation rates.
Overall, the property market in Leicestershire and Warwickshire appears to be outperforming national trends by a small margin with increased sale prices and market activity. However, as we approach the build up to a general election we typically see a slowing of the property market while consumers wait to see the impact of the result.
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