SnowGate third quarter property market report

The UK and West Yorkshire property market third quarter review.

Here’s our latest take on the property market, which looks at market conditions for properties in West Yorkshire, including our patches covering homes in Holmfirth, Mirfield, Holme Valley and Huddersfield. 

And what a difference an interest rate cut makes. Lots more optimism and lots more movement. 

After a prolonged period of hesitation, the residential property market is now seeing increased fluidity in most price points - all thanks to that interest rate cut back on August 1st. Although the one section that is still showing some hesitation among buyers is the premium end of the market. But we expect this to change in early 2025.

The stagnation caused by the calling of a sudden general election back in May, and the six week hiatus before a new government was installed, led to a very quiet time in the property market. People were either consumed by political events or distracted by a summer of sport (including the Olympics) to really focus on the business end of their properties.

And then on August 1st the Bank of England reduced the base rate by 0.25% to 5%, heralding the end of a succession of 14 consecutive increases - and a period of subdued activity. 

Base rate cut leads to mortgage lendings rushing out attractive new lending offers.

The base rate cut was significant in that it sent a wide ranging signal about the cautious optimism around inflation getting back under control, and it also led to a raft of new cheaper mortgage deals coming on to the market.

The net result is increased movement at all levels of the market, with properties in both the first time buyers sector and high end price bracket starting to attract buyers ready to commit. This is reflected in Latest figures from the Halifax which show that the number of mortgages agreed is up by 40% on last year.

UK wide house price inflation is currently at 4.7% with the North West, and the Yorkshire & Humber regions seeing the highest price increases of 5.1% and 4.3% respectively.

The typical price of a home in England is now £293,399, up from £292,540  in August.

Increased affordability, thanks to falling inflation, strong wage growth and a battle among lenders to attract buyers with new offers, is certainly behind the movement we’re now seeing here at SnowGate. 

Indeed, an increased volume of valuations and more confirmed offers on properties shows a definite change in mood, which will probably be enhanced by possible further rate cuts to come.

Bank of England Governor Andrew Bailey recently hinted at More aggressive interest rate cuts if inflation trends continue to hold.  Although, since then the surprise drop in inflation to  below 2%, when the latest figures came out on October 16, is leading to Renewed speculation on reduced interest rates on another possible drop in rates.  

All that said, buyers will not just be looking for the best mortgage deals possible but also maximum value for money from their property deal. 

So, as always, a proper, professional valuation is essential to ensure that your property attracts committed buyers, not curious browsers. 

We’re ready and available to come and see your property 7 days a week.

Just call Max or Oliver on 01484 680800 or 01924 497801 to arrange an appointment.