Insights into the Isle of Wight’s Housing Market: Spring 2024 Update

Spring has brought some positive developments to the Isle of Wight’s housing market, with the Property Clinic team sharing their insights on the latest trends. As we enter the second quarter of 2024, key statistics reflect a strong and resilient property market.

One of the key updates that experts were awaiting in March was the inflation rate, which saw a decrease from 4.2 per cent in January to 3.8 per cent in February. This slowdown in the rate of rising costs of goods and services was a positive sign for the economy.

Moreover, the Bank of England decided to hold the base rate at 5.25 per cent in March, providing stability to the mortgage market. Despite hopes for a reduction in the base rate following the fall in inflation, the decision to maintain the rate suggests confidence in the current economic conditions.

Mortgage approvals for house purchases also saw an increase from 56,100 in January to 60,400 in February, indicating a growing confidence among home buyers. Additionally, average asking prices rose by 1.5 per cent in March, with sellers seeking an extra £5,279 on average.

Further boosting confidence in the market, the energy price cap fell at the end of March, allowing households to benefit from lower fuel bills. This, coupled with growing buyer demand and an increasing number of sales being agreed, paints a positive picture for the housing market on the Isle of Wight.

In the lettings sector, rents continued to edge up in March, with the UK’s average monthly rent reaching £1,273—a 0.9 per cent increase compared to February. While rents increased in most regions, Wales saw a slight decrease in average monthly rent.

Overall, the Property Clinic team’s observations on the Isle of Wight’s housing market reflect a promising start to the spring season, with various indicators pointing towards a resilient and flourishing real estate landscape.