Savills starts its report by analysing the recent Nationwide House Price Index. In February, there was a 0.7% increase in house prices, bringing the annual growth rate to 1.2%, as reported by Nationwide.
Savills points out that this marks the first instance of positive annual growth since January 2023, attributing it to heightened market activity spurred by increased demand at the beginning of the year.
Additionally, Savills delves into the timing of anticipated interest rate reductions.
The Bank of England (BoE) is still managing the challenge of controlling inflation while dealing with slow economic growth. According to the ONS, the UK entered a technical recession by the end of 2023, as reported by the ONS, despite wages growing faster than inflation. These opposing stories have postponed the anticipated timing for the initial base rate reduction. Oxford Economics forecasts the first rate cut to occur in June, with two more cuts likely later in 2024.
As a result, we may see more buy-to-let investors choosing to enter the market towards the end of the year once those rate cuts come into play.
Discover More: So, is investing in property a good idea? See our guide on the best areas to invest in property to better understand the UK market.
