With inflation easing to 2.8%, it’s expected to relieve some of the pressure on affordability and consumer confidence. This is a positive step for both affordability and consumer sentiment, inspiring more confidence to return to the UK property market.
For some buyers, sellers and homeowners, this shift could represent a genuine turning point after a prolonged period of economic caution.
A Market Finding Its Footing Again
Following the rise in house prices during the pandemic years of 2021 and early 2022, the market naturally adjusted as mortgage costs increased and affordability became more stretched. Data highlighted by Statista shows annual UK house price growth peaked at around 14% before slowing in 2023.
More recently, however, the market has returned to more sustainable levels of growth, reflecting a much steadier housing market.
Across our local markets in North Hampshire, Surrey and Berkshire, we continue to see well-positioned homes attract strong interest, particularly where pricing accurately meets market conditions. Whilst the pace of the market is more measured than previous highs, activity levels remain encouraging and buyer demand continues to build.
Why Inflation Matters to the Property Market
As inflation eases, expectations around future interest rates often improve too. This can help lenders offer more competitive mortgage products, improving affordability for buyers and supporting wider market activity.
For some households, small improvements in mortgage pricing could make a meaningful difference to monthly affordability calculations and confidence levels.
Importantly, the property market does not necessarily require dramatic change to improve momentum. Sometimes, buyers are simply waiting for reassurance that conditions are becoming more stable before committing to their next move.
Signs of Market Confidence Returning
Whilst there are industry reports that suggest many buyers are waiting for a sign before moving, we are still seeing a strong underlying demand from buyers reflected in our day-to-day activities.
Whilst some buyers delayed decisions during periods of higher mortgage rates and economic uncertainty, we’re expecting that postponed demand to return as the outlook continues to improve.
This is particularly relevant for first-time buyers, many of whom are especially sensitive to mortgage affordability and monthly repayment changes.
Encouragingly, lenders have seem to have shown greater confidence in recent months, with mortgage product availability improving and more competitive fixed-rate options becoming increasingly common.
What This Means for Buyers and Sellers
The current landscape is offer something certain people have been waiting for: greater certainty. For sellers, this remains a market that rewards realistic pricing, strong presentation and good-quality marketing. For buyers, improving economic sentiment could create opportunities before competition strengthens further. For landlords and developers, greater stability provides a more positive backdrop for longer-term planning and investment decisions.
If you are considering moving home across our local areas and would like advice on the current market, we’ll be happy to help. Feel free to contact your local office or book a free valuation.
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