Insights into the UK Property Market in 2024
The UK property market has been experiencing quite a journey in recent years. After enjoying a rise in market growth and activity in 2021 and early 2022, the market experienced a slowdown towards the end of last year. We Buy Any House attribute this slowdown to high interest rates and the rising cost of living, which has presented challenges for those looking to enter the property market.
Despite this, there are some indicators of a market stabilising. While some experts predict we will see house prices increase towards the end of the year, others believe they will remain the same. Why might some people predict some stabilisation? Here are the key reasons:
Limited Supply: We have seen fewer houses on the market compared to previous years. This has stopped house prices from reducing, and if this trend continues, it’s likely to help the market stay stable into 2025.
Interest Rates: Over the last couple of months, the Bank of England and experts have hinted at base rates being cut. If these rates were to drop before the end of 2024, mortgages would become more affordable, encouraging more people to enter the market.
Although there are some hints at potential market improvements before the end of 2024, nothing is guaranteed. In such an uncertain market, coupled with tumultuous global economic conditions and delays to cuts on interest rates, there are question marks over the possibility of the UK property market experiencing major changes before the end of the year. If you’re in the market to buy or sell a property, it’s important to keep an eye on the factors that influence it, as these can vary from month to month.
Regional Disparities
A noticeable feature of the current market is the contrast in performance between urban and rural areas, which you should be aware of if you’re planning on entering the property market.
Urban Areas
Price Growth: The price reductions we witnessed in late 2023 are still a factor in this market. Uncertainty remains a main feature, so buyers and sellers continue to proceed with caution.
Supply & Demand: There are many more properties on the market than in previous years, but despite this, there’s still a shortage compared to the demand. Therefore, expect competition to remain a feature of the urban property market for the remainder of 2024.
Market Drivers: Urban markets are heavily influenced by employment, infrastructure, and the lifestyle portrayed. Therefore, areas that promote a positive lifestyle will benefit from more activity than those that don’t.
Rural Areas
Price Growth: Rural house prices have risen steadily, though not as quickly as in 2023. This trend is driven by a change in buyer preferences post-pandemic, with many opting for larger, quieter properties away from city life. However, as this trend begins to slow, growth is stalling, potentially impacting future price increases in rural areas.
Supply & Demand: For the remainder of 2024, the limited rural housing supply is expected to keep prices high and competition fierce. However, as mentioned previously, with pandemic-driven trends like remote work declining, demand for rural properties may slightly reduce towards the end of the year. Despite this, the ongoing supply constraints will likely keep prices rising.
Market Drivers: In the UK rural property market, location, access to amenities, and connectivity to major towns play a big part in property values. Properties near urban centres will often enjoy higher prices due to their accessibility to employment and amenities. On the other hand, areas with limited amenities or poor connectivity may see lower or declining property values.
The Impact of Interest Rates
The high interest rates at 5.25%, which have dominated the market this year, have made mortgages more expensive, leading to increased monthly payments and reduced borrowing capacity, especially for first-time buyers. The expectations of a rate cut later in the year have created uncertainty. While introducing lower rates would boost buyer demand and create more market activity, if they are not introduced, we will continue to experience the cautious and uncertain market we have experienced in 2024.
Strategies for Sellers
What we do expect to see in 2024 for the UK property market is the average house price going down slightly. While this is good news for buyers, sellers might face challenges. To maximise your chances of getting a reasonable price, consider these tips:
Pricing Flexibility: Be ready to adjust your asking price based on buyer feedback and market conditions. A flexible approach can help you sell faster and more effectively.
High-Quality Visuals: Invest in professional photography to highlight your property’s best features and attract online buyers.
Curb Appeal: Maintain your property’s exterior to make a strong first impression. Fresh paint, tidy grass areas, and a clutter-free entrance can enhance its appeal.
Home Staging: Depersonalise and declutter your home to create a spacious, inviting atmosphere. Use neutral colours and minimalistic decorations to appeal to a broader audience.
Being proactive and adaptable can improve your chances of a successful sale despite the market conditions.
If you’re looking to sell your house quickly, the competitive UK property market can pose challenges. However, We Buy Any House provides a solution by buying your property quickly, helping you bypass the open market.
Conclusion
The UK property market is experiencing a complex and uncertain period. While challenges are set to continue, 2024 could bring positive outcomes for both buyers and sellers. Staying informed about market trends, understanding regional variations, and adopting a flexible approach are essential for navigating this evolving environment.
