The UK property market in 2024 has shown notable unpredictability. Initially influenced by pandemic-related activity and government incentives, it faced challenges in late 2023 due to rising interest rates and a cost-of-living crisis, particularly affecting high-value areas like London, resulting in a dip in house prices.
However, thankfully, the market has shown signs of stabilisation for buyers and sellers. Some experts predict a potential rise in house prices by the end of the year, while others predict just a more stabilised market for the remainder of 2024. Two key factors support these predictions:
Despite increasing sellers compared to previous years, overall housing supply remains relatively low. This reduces the likelihood of significant price reductions, contributing to a steadier market outlook.
With hints from the Bank of England about potential base rate cuts, there is optimism that mortgage rates may stabilise or even decrease. This would improve affordability for buyers and encourage more activity on the market.
However, although there are promising signs, it’s still uncertain how the remainder of 2024 will play out. This uncertainty can be drawn down to factors like the upcoming general election, global economic conditions, and fluctuations in interest rates.
It’s particularly important for those looking for a quick house sale in the UK to take time to understand these potential market changes. Stay informed and seek professional opinions to make educated decisions regarding your property.
Market Trends: Urban vs. Rural
In 2024, the UK property market witnessed distinct trends between urban and rural areas.
Urban Areas:
Price Trends: Urban property prices, which declined late in 2023, are now experiencing slower growth than initially predicted. Some areas might see prices remain the same for the rest of 2024.
Supply & Demand: Despite an increase in listings, urban areas are struggling to meet housing demand, leading to continued competition among buyers and potentially allowing for house prices to remain high in these areas.
Market Influencers: Economic policies, job creation, and infrastructure developments hugely influence the property market. The results from the upcoming general election will likely define the direction of urban property markets in the UK through 2024 and into 2025.
Rural Areas:
Price Dynamics: Rural house prices have continued to rise, although slower than the peak in 2023. We have linked this growth with a shifting buyer preference towards larger properties and a quieter lifestyle post-pandemic. However, as we move further away from this period, we see this demand slow down, presenting potential risks for the remainder of the year.
Supply & Demand: Despite a slight easing in demand, the limited supply of housing in rural areas is expected to continue, keeping competition strong throughout 2024.
Market Drivers: We expect the appeal of a location, access to amenities, and connectivity to urban centres will continue to impact rural property values in the UK for 2024. Proximity to major routes and urban hubs tends to command higher property prices, whereas more remote locations may experience more stable or declining values.
If you are looking to sell your property quickly, it will be important to understand the market trends and expectations based on your location. This will help you understand what pricing to expect if demand is high for your location and what is driving market activity.
Interest Rates Forecast
Interest rates have been one of the main topics of discussion so far this year. As of June 11, 2024, the Bank of England’s base rate stands at 5.25%, marking a significant increase from previous years and having a massive impact on mortgage affordability. Here is how these high interest rates are impacting the housing market:
Increased Monthly Payments: Homebuyers should expect higher monthly mortgage payments compared to the previous year, which could potentially reduce borrowing capacity.
Reduced Borrowing Capacity: Higher rates reduce the maximum mortgage amount buyers qualify for, particularly affecting first-time buyers entering the market.
Looking ahead to the rest of 2024, the opinions on interest rate outcomes vary, presenting both opportunities and risks for property sellers:
Increased Buyer Interest: A potential rate decrease could attract more buyers, increase competition, and potentially secure faster sales.
Short-Term Market Uncertainty: Although there are some positive outlooks, as mentioned before, the immediate future remains uncertain. Sellers may encounter reduced buyer interest as many wait for potential rate cuts, which might not happen for several months. Therefore, sellers aiming for quick house sales will likely face challenges in 2024.
Government Influences: Budgets & Policies
Government interventions and budgets significantly influence the performance of the UK housing market. With a general election coming up, we expect the following implications:
Market Caution: Uncertainty regarding the election outcome may temporarily reduce market activity. Buyers in particular may want to proceed cautiously as they await clarity on future government policies and their impact on the market. As a result, this could lead to a potential delay for those looking to sell quickly.
Policy Influence: Housing policies proposed by parties can affect buyer and seller behaviour. For instance, changes in stamp duty rates or measures to enhance housing affordability could stimulate demand or affect property prices.
Seller Strategies
In 2024, the UK property market is widely expected to witness a slight decrease in average house prices, which may offer opportunities for buyers while posing challenges for sellers. Achieving a property sale by the end of the year is unlikely due to delays in property completions. However, we have gathered the essential tips to enhance your property’s appeal and maximise its selling price for those looking to sell quickly:
Price Adaptability: Remain flexible with your asking price based on market feedback and conditions. Being responsive to changes can considerably speed up the selling process while ensuring your property remains competitive.
Professional Photography: We recommend investing in professional photography to show off your property’s best features. High-quality visuals are crucial for attracting online interest and increasing the likelihood of a quick house sale.
Curb Appeal: Enhance your property’s exterior to make a solid first impression. Ensure the entrance is well-maintained, consider freshening up with a coat of paint, and a tidy garden to boost curb appeal.
Following these strategies can improve your chances of selling your property swiftly and at a favourable price in the current market conditions.
Conclusion
As we navigate through the remainder of 2024, the UK property market presents a mix of challenges and opportunities. The landscape is shaped by fluctuating trends, interest rates, and government policies, creating uncertainty for buyers and sellers alike. Staying informed about market updates and adapting to these evolving conditions is crucial. If you’re looking to sell your house quickly during this uncertain period, We Buy Any House can do so in as little as three days.