As we venture into 2024, the UK property market is poised for a promising upturn. With interest rate stabilisation and competitive mortgage rates renewing buyer confidence, the property sector anticipates a surge in demand, which could lead to an upward trend in UK property prices.
The 2024 property market forecast looks bright as the economy stabilises and inflation control boosts consumer confidence, making property investment in the UK an attractive option. The year's strong start, surpassing the activity of 2023, suggests a market recovery, signifying potential growth in property values.
Key factors
Pent-up demand from buyers, increased investor activity, and potential government incentives for property purchase during the upcoming general election are expected to further energise the market. The UK property market also stands to benefit from global economic trends, like increased foreign investment, and the ever-relevant supply and demand dynamics. With limited new housing supply and growing demand, property prices are likely to climb. Additionally, with the demographic shift as all boomers enter retirement, there's a growing inclination towards viewing property as a long-term investment, adding to the market's stability.
Over the past Year...
The housing market remained relatively stable despite the economic challenges faced in 2023. Monthly house prices rose in December by 0.2% (statistics from Nationwide) and has demonstrated that there remains a high demand for homes - a trend that is looking to continue into 2024.
Experts within the industry have shared their optimistic view of the market, highlighting that the worst of the downturn is over, following still from the impact of post-pandemic times. Inflation is returning to the Bank of England target of 2.0%, reflecting a more stable economic environment and along with falling mortgage rates, it is looking that 2024 will see an improvement in buyer’s affordability. Therefore there remains a good level of demand from home-buyers for the right-priced homes going forward.
According to Rightmove the average asking price of a home in the United Kingdom is just above £355,000.
Last year, first-time buyers who bought a home with a mortgage fell to its lowest since 2013 according to the Yorkshire Building Society - with around just 290,000 first-time buyers in 2023. Despite this, for overall home-buyers, the first-time buyers still represented over half of all buyers meaning that first-time buyers retain the largest share overall with 54% in 2023. This demonstrates the reliance on this segment on the wider market’s buoyancy.
The 2024 general election is likely to be a pivotal event that has previously caused some uncertainty for buyers to move during this period. All major parties look to face the issues surrounding the affordability of housing, particularly for young people amidst the cost of living crisis in particular. Although there may be a slowdown running up to the election, it is likely that the election will significantly impact the longer term improvement of the market and respective house price growth.
This comprehensive outlook suggests that the 2024 UK property market is on the cusp of a significant and positive transformation. and here at Villager Homes, we look forward to a confident and successful new year ahead.
If you're interested in finding out the current value of your home please give us a call on 01480 416161 or for a free instant valuation click here.
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