As 2024 unfolds, the property market in the UK is already bustling with activity. The rental market is seeing notable increases in monthly rents, while the sales market shows promise with a positive uptick in property valuations. This article delves into the dynamics of the market, offering insights for landlords aiming to capitalize on their assets and for homeowners embarking on sales ventures.
The beginning of 2024 is witness to a soaring pattern in the rental market’s monthly rents, with these on average climbing by 9%. This translates to renters shouldering an additional average of £1200 per year compared to the previous 12 months—a significant financial undertaking. Despite the strain on renters, landlords find themselves on the more fortunate end of the spectrum, reaping higher returns from their rental properties.
Housing Market Resilience: Price Trends
The market’s resilience is evident in property values, as noted by a predicted 3% increase over the previous year’s end figures. Sellers placing properties on the market are seeing potential gains, with asking prices up by £4571 on average—a sign of robust growth not witnessed since before pandemic times. Although there’s a slight 0.7% dip from the year prior, market professionals are optimistic, buoyed by surging buyer demand and an influx of 15% more listings entering the market, signalling a return of buyer confidence.
With the new year, it is essential for sellers to adopt the correct pricing strategy to stand out in the market. Despite a surge in interested buyers, the supply of available properties outstrips demand. For a sale to materialise swiftly, sellers must resist overpricing and align their expectations with the economic reality of their locality. The essence of successfully closing a deal lies in striking a balance—setting a price that attracts buyers while offering a fair reflection of the property’s value.
The mortgage domain is undergoing noteworthy shifts, making homeownership a more attainable goal for many. As we step into 2024, the average 5-year fixed-rate mortgage has dipped to 4.86%, down from the previous peak, and the trend points towards even lower rates. Forecasts anticipate the central bank’s borrowing costs to fall below 4% by next year, offering a silver lining for prospective buyers daunted by high borrowing rates.
For a sizable portion of homeowners, however, the horizon isn’t as clear. The looming ‘mortgage time bomb’ could pose challenges for those transitioning from older, more economical mortgage deals to the current market rates. An approximate 1.5 million homeowners may see their monthly repayments surge, potentially necessitating average families to find an additional £1800 annually to afford their homes.
To find out more about maintaining compliance as a landlord in West Sussex, Surrey and Kent, get in touch with the team at Greenaway Residential Estate Agents & Lettings Agents
Greenaway Residential Estate Agents Crawley 01293 561188
Greenaway Residential Estate Agents East Grinstead 01342 777977
Property Management 01293 561789
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