The UK property market in 2024 has been volatile. Initially improved by pandemic-related activity and government incentives, it later faced challenges in late 2023 due to increased interest rates and a cost-of-living crisis. This particularly affected high-value areas like London, causing a dip in house prices.
However, there are signs of stabilisation this year. Some experts even predict a potential rise in house prices towards the end of the year, while others expect a more balanced market. Here are two key reasons behind these predictions:
- Firstly, despite an increase in sellers compared to previous years, overall housing supply remains relatively low. This reduces the likelihood of drastic price reductions, contributing to a more stable market outlook.
- Secondly, with inflation seemingly under control and the Bank of England hinting at potential base rate cuts, there is optimism that mortgage rates may stabilise or even decrease. This would improve affordability for buyers and help stimulate market activity.
However, despite these optimistic outlooks, uncertainty remains for the rest of 2024. This uncertainty is influenced by factors like the upcoming general election, global economic conditions, and interest rate fluctuations. Staying informed about these trends is crucial whether you want to purchase or sell your house.
Urban vs. Rural Market Trends & Price Variances
In 2024, the UK property market has shown differences in trends between urban and rural areas.
Urban Areas:
- Price Growth: Following a decline at the end of 2023, urban property prices are experiencing slower growth 1than initially expected. Some areas may see prices remain unchanged for the remainder of 2024.
- Supply & Demand: Despite an increase in listings, urban supply is still struggling to meet demand; therefore, buyers can expect competition to remain fierce in these areas.
- Market Drivers: Urban markets are influenced by factors like job creation, economic policies, and infrastructure development. As such, the upcoming general election will set the tone for urban property trends in the UK for the remainder of 2024 and into 2025.
Rural Areas:
- Price Growth: Rural house prices continue to rise, although slower than the peak in 2023. This has been driven by post-pandemic shifts in buyer preferences for larger properties and a slower pace of life. However, as we continue to move beyond the pandemic, this trend is slowing down, posing risks to future growth this year.
- Supply & Demand: Even with a slight slowdown in demand, limited housing supply in rural areas is expected to continue to drive competition among buyers throughout 2024.
- Market Drivers: In the rural property market in the UK, factors such as location desirability, access to amenities, and connectivity to major towns and cities significantly influence property values. For example, rural areas which are well connected to urban routes often demand higher property prices, while remote locations may experience more stable or declining values.
Interest Rate Outlook
As of June 11, 2024, the Bank of England’s base rate is 5.25%, marking a considerable increase from previous years and significantly impacting mortgage affordability. Here’s an overview of how these elevated interest rates can affect the housing market:
- Higher Monthly Payments: Buyers can expect increased monthly mortgage repayments compared to the previous year, potentially limiting borrowing capacity.
- Reduced Borrowing Power: Higher rates decrease the maximum mortgage amount buyers qualify for, particularly affecting first-time buyers.
- Looking ahead, interest rate forecasts for 2024 vary. The potential outcomes pose both opportunities and risks for sellers:
- Expanded Buyer Interest: A potential rate decrease could attract more buyers, increasing competition and possibly encouraging quicker house sales.
- Short-Term Uncertainty: However, the immediate future remains uncertain. Sellers may encounter less buyer interest as many hold out for rate reductions, which could potentially not come for another number of months. Therefore, those looking to sell their house fast may struggle in 2024.
Government Impacts
Government interventions and budget allocations influence the UK housing market’s performance. With the general election coming up, we expect to see varied implications on the property market for the remainder of 2024:
- Doubt surrounding the election outcome may lead to a temporary slowdown in market activity as buyers and sellers take a cautious approach. This hesitation may result in a decrease in the number of property’s sold as individuals wait for clarity on future government policies and their impact on the market.
- The housing policies proposed by each political party can influence buyer and seller behaviour. For example, more policies aimed at changing stamp duty rates or measures introduced to increase housing affordability may improve demand or affect property prices. Similarly, promises to invest in infrastructure projects in certain areas can influence the attractiveness of specific locations for property investment.
Despite potential fluctuations, the overall impact of the election on the market is expected to be moderate, given relatively minor policy differences between major parties.
Strategies for Sellers
Overall, in 2024, the UK property market is anticipated to see a slight decrease in average house prices, which may favour buyers but present challenges for sellers. However, achieving a successful property sale in late 2024 is possible through accurate planning and preparation. Here are key tips to maximise your property’s appeal and price:
- Price Flexibility: Stay adaptable with your asking price based on market feedback and conditions. Being open to adjustments can expedite the sale process while ensuring your property remains competitive.
- Professional Photography: We advise investing in professional photography to highlight your property’s best features. High-quality visuals are vital to attract interest online and increase the chances of a quick house sale.
- Curb Appeal: Maintaining your property’s exterior can create a positive first impression. Enhance your curb appeal with a well-kept entrance, or even a coat of paint on the front door.
Conclusion
From our experience, the UK property market for the remainder of 2024 presents a blend of challenges and opportunities. The market is navigating uncertainty, characterised by fluctuating trends, interest rates, and government policies. We recommend staying informed about market updates and remaining adaptable to the evolving property landscape.
If you want to sell for a quick house sale during this uncertain period, We Buy Any House can sell your property in as little as 3 days.