With around seventy years of joint experience in the property market, estate agents Keith Trigg and Simon Meek are behind our Isle of Wight County Press Property Clinic.

This week, part two of the Property Clinic team's thoughts on what Spring has brought to the Isle of Wight's housing market so far...

We’re already a quarter of the way through 2024 and a stocktake of statistics shows a resilient property market. In March, experts were waiting for two important figures to be updated: inflation and the base rate. The news on both was encouraging.   

First came another drop in inflation. Inflation was 3.8 per cent in February, compared to 4.2 per cent in January. It meant the cost of goods and services was rising but the rate at which it did so was slowing.

Base rate held for another month. 

The second announcement came from the Bank of England. It met to decide the Bank’s base rate, on March 20. This was held, once again, at 5.25 per cent.

Many hoped the fall in inflation would see the base rate reduce but the ‘hold’ meant the mortgage market is stable.

Mortgage approvals increase.    

Mortgage lending in February 2024 had increased. New mortgage approvals, for house purchases between January and February, rose from 56,100 to 60,400. This pointed to growing confidence among home buyers.   

Another indication of growing confidence has been the upward trajectory of average asking prices – up by 1.5 per cent, according to Rightmove’s March House Price Index. This translated to sellers asking for an extra £5,279. The UK’s new average asking price rose to £368,118.   

Other eye-catching statistics from Rightmove’s report included an increasing number of sales being agreed. Buyer demand has been increasing, sitting at eight per cent above last year’s level.   

While not directly linked to the property market, experts were happy to see the energy price cap fall, at the end of March. Decreasing wholesale energy prices allowed the cap to reduce to £1,690, which will apply until June. As a result, households should see lower fuel bills, with more money in our pockets. 

Have you got a question for Keith Trigg and Simon Meek of the Isle of Wight County Press Property Clinic?

  • Email editor@iwcp.co.uk and write 'Property Clinic' in the subject line

Rents edged up in March   

In lettings, rents have continued to rise, but by modest amounts. According to Zoopla’s March Rental Report, rents were creeping upwards. In January, the average rent for new lets in the UK was £1,223, compared to an average new rent price of £1,219 in December 2023 and £1,213 in November.   

More recent rental analysis shows the UK’s average monthly rent in March was £1,273 – a 0.9 per cent rise when compared to February. In Scotland, the average monthly rent rose 1.4 per cent. Increases were not across the board, however as the average monthly rent fell 0.4 per cent in Wales.