The market’s sensitivity to mortgage rates remains a key factor. Rates have inched up from their lows in early 2024 but are still below the peaks of mid-2023. This has maintained buyer confidence, although the balance between supply and demand is shifting. Increased supply, as reported by the RICS survey, has put some downward pressure on prices.

Inflation, which fell to 3.2% in March, combined with positive GDP figures for Q1 2024, suggests the UK is moving out of recession. However, the timing of the first base rate cut by the Bank of England remains uncertain, with predictions pointing to one of the next two MPC meetings.

Rental growth remains strong, with annual increases of 6.9% in March, driven by significant regional variations.