Are changes on the horizon for the housing market in 2024?
After a stagnant couple of years due to rising inflation, cost of living and political unrest, the property market could finally be on the mend – or so it seems.
Rightmove released a report that highlighted an upward trend for the property market.
The number of new properties going up for sale is 15% higher than a year ago, with growth strongest in London and the North East of England, and the number of enquiries to estate agents were up 5% year-on-year in the first week of January.
Mortgage transactions likely to increase
Rightmove’s stats also showed the average price of a home has risen around £4,500, or 1.3%, in January – and there could be more to come.
House prices were predicted to climb 3% in 2024 as lenders begin to slash mortgage rates in order to keep pace with a more competitive housing market. The best five-year fixed rate mortgage is currently around 5% but at times, it dipped under 4%.
Thanks to the rising number of mortgage approvals, and the competitive market increasing, it is thought transactions could increase by as much as 10% this year.
Further base rate cuts on the cards?
There's a chance mortgage rates will fall even further as it is expected that the Bank of England will make a further cut to the base rate sooner, from its current 5.25%, potentially in early summer, due to falling inflation.
In terms of borrowing, this could mean two things. For those on a variable mortgage, monthly repayments will decrease slightly, which will help ease the pressure on household income. Furthermore, it could allow people to save more to enable them to move. And, the more people in the market, the more buoyant it becomes and the more competitive mortgages and other loans become.
If you’re thinking of moving, it’s a good time to be in the market.
Tim Bannister, Rightmove's director of property science, said: "After a stop-start market in 2023, the initial signs suggest a smoother year for movers in 2024. More new sellers are now entering the market, and with more confident pricing."
It will be interesting to see how this year pans out but the signs are there for a more settled, competitive market for property.
If you’re thinking of selling your home, or you’re thinking of purchasing a buy to let property, contact Downs Solicitors to see how we can help.