What will happen to house prices? Should I rent or buy? Will a Labour or Tory Government be better for homeowners. And have we finally seen the back of interest rates?
These form just some of the questions those looking to predict what will happen in the property market next year are asking.
The year has ended positively for the market, and green shoots are on the horizon.
Trying to predict what will happen next is never easy but there are questions which come up again and again when I talk to people working in the sector.
Will prices drop or rise?
It is famously difficult to predict house prices in anything but the short term but I’ll have a go anyway. Over 2024 we can expect to see recovery in volumes and prices in popular locations where wealthy investors purchase or families buy a home to live in. The values here look likely to increase but the national average will be pulled down by less desirable property losing value.
Buy to Let is still in bad shape and will continue to be so for some time to come. This will suppress prices in larger blocks of flats and estate-type homes. We may end 2024 with almost no growth in prices but it could have been far worse – a free fall predicted by some, looks very unlikely at the moment.
Will rents rise further in 2024?
Inflation in the rental sector will slow as rents reach their peak affordability. The market will still be very competitive with too many tenants chasing too few properties. This problem is exacerbated as many already in a rented home are choosing not to move because the market is so difficult. Buy to Let