The summer housing market was positive, helped by confidence after the General Election and a reduction in Bank Rate, but what does the future have in store?
The outlook for buyers
Rightmove’s Property Expert, Tim Bannister, observed, “The conditions are there for a more active autumn market.” Rightmove predict that, by the end of 2024, house prices will be 1% higher than they were the previous year1. Meanwhile, Zoopla expects mortgage rates to stay around 4% to 4.5% for the rest of 2024. It is thought that wages will rise while house prices remain consistent, improving buyer affordability.
Rental inflation slowing
Rents are now rising at their slowest rate since 20212. Predictions suggest a 3 to 4% increase overall in 2024, compared to annual increases of 8% in 2023 and 11% in 2022.
2025 and beyond
Looking ahead, experts predict the market to continue a slow but steady recovery. Zoopla’s Executive Director of Research, Richard Donnell, commented, “Economists currently expect base rates to fall to 3.5% by the end of 2025, which would imply mortgage rates remaining in and around the 4%+ range.”
In terms of broader trends, it is expected that energy efficient homes and houses located near public transport will continue to be highly sought after. Employment flexibility widens the search area in terms of where people are looking to move and achieve the quality of life they want.
1Rightmove, 2024, 2Zoopla, 2024
It is important to take professional advice before making any decision relating to your personal finances. Information within this article is based on our current understanding and can be subject to change without notice and the accuracy and completeness of the information cannot be guaranteed. It does not provide individual tailored investment advice and is for guidance only. Some rules may vary in different parts of the UK.