Understanding the latest market trends
The property market is evolving rapidly, and as a broker, you’re navigating a complex landscape as you support your clients. At Leek Building Society, we’ve analysed the latest market data and trends to help you stay ahead. Here’s what you need to know about recent developments and their implications for your business.
House price data: What’s the latest?
House prices continue to dominate headlines, with the latest data highlighting shifts in affordability and demand. According to the ONS (Office for National Statistics), house prices rose by 2.9% year-on-year in September, while October saw a 10% jump in transactions to over 100,400. These changes reflect a dynamic market where affordability and demand vary significantly across regions. As brokers, your expertise in identifying opportunities and advising clients on their unique needs is more critical than ever.
Fixed-rate mortgages: The upward trend continues
Fixed-rate mortgages remain a popular choice for many borrowers seeking stability amidst economic uncertainty. However, rates are on the rise, posing challenges for clients coming off fixed-rate deals. Recent data shows that nearly half of mortgage holders face higher payments when transitioning. Helping clients evaluate their refinancing options or explore alternative products has never been more important in maintaining financial stability.
Transaction data
The latest transaction data reveals a dynamic market with pockets of activity despite overarching caution. Clients are still moving, buying, and investing, but they’re more selective. For example, the value of new mortgage commitments increased by 11.3% in Q2 2024 compared to Q1, reaching £66.9 billion—the highest level since Q3 2022. This underscores the importance of tailored advice and robust market knowledge to match the right products to their needs.
Is the Buy-to-Let (BTL) market dead?
Absolutely not! Contrary to some predictions, the BTL market remains viable, with recent data on rental yields painting a positive picture. Q3 data shows yields rose to 6.72%, with 54% of transactions involving clients with 1-3 properties in personal names. While challenges like regulatory changes and increased costs persist, brokers can help landlords identify opportunities and optimise their portfolios. The demand for rental properties remains strong, providing a foundation for sustained investment in this sector.
Insights from IMLA data
Data supplied by IMLA offers a closer look at gross advances and new commitments, giving brokers a detailed understanding of lending trends. In Q2 2024, gross advances increased by 16.7% from Q1, reaching £60.2 billion. Conversion rates from Decision in Principle (DIP) to completion are a key metric, reflecting borrower confidence and lender efficiency. Staying informed on these figures can help you to set realistic expectations with your clients and optimise your processes.
What we’ve seen in the last quarter
Here at Leek, we’ve observed notable trends over the past quarter. Borrowers are increasingly prioritising flexibility and personalised solutions. As a mutual, we remain committed to working closely with your to deliver tailored products and a responsive service. By maintaining strong broker relationships, we aim to navigate the evolving market together.
Supporting brokers through change
In today’s environment, we understand that you’re more than intermediaries—you’re trusted advisers. We’re here to support you with insights, competitive products, and a shared commitment to client success. Whether you’re guiding first-time buyers, seasoned investors, or landlords, our team is ready to collaborate and innovate.
Stay tuned for more updates and insights as we continue to analyse the market. Together, we can empower your clients to make informed decisions in these dynamic times.
For more information on our latest products and broker support services, call our dedicated BDM Team on 0808 281 9309 or email us at intermediary.mortgages@leekbs.co.uk.
