Zoopla’s data for the month revealed an annual decrease in house prices across the country, with a national average fall of 1.1%. However, London experienced a more substantial decline of 1.5%. However, if you’re looking for buy-to-let properties in London, you can still expect to pay an average home price of £536,800.
Cash transactions accounted for a significant portion, representing a third of all property sales, while transactions involving mortgages saw a decline of one-third. This decline can be attributed to the impact of higher interest rates, which were raised by the Bank of England in successive steps, reaching 5.25% by August. However, since then, the base rate has remained unchanged.
The recent drop in inflation, falling to 3.9% last month, has kindled optimism for potential rate cuts in the coming year. In response, mortgage rates have already started to recede, with the average for a two-year fixed-rate mortgage standing at 5.95%, and for a five-year fixed-rate mortgage, it is 5.55%, according to data from Moneyfacts.
Interested in finding out more about the buy-to-let market? Consider reading our pros and cons of buying a rental property guide, where we cover everything you need to know about buy-to-let investment. And if you want to know about some of the sound property investments, check out our guide on the best things to invest in right now. We also have a helpful guide on the best place for property investment.
