As we roll ourselves into 2024 like a leftover chocolate roulade gathering resolutions and unsolicited financial advice in our mentions, the London property market remains as unpredictable as mercury in Gatorade. Our property industry trends forecast has real main character energy right now.
Despite facing grueling challenges like Matt Hancock on a reality show, London’s housing market has shown some real resilience. Prices have managed to stay afloat in spite of increasing mortgage rates and interest rates, so let’s ‘rise and shine’ and greet the new year with a head full of real estate knowledge…
The future’s bright, the future’s negotiable
It’s true. 2024 may bring some ups and downs to London’s property market, but let’s face it, what year does? And we’re not talking about the weather here. While there may be a slight drop in new seller asking prices, don’t fret! The housing market is a resilient beast. It has plenty of mortgage options and homes to choose from. But don’t go at it alone. Make sure to have a trusty estate agent by your side (coo eee) to help navigate the treacherous waters of pricing and negotiation. And remember, each area and type of property will have its own quirks, so it’s important to stay on top of demand and supply trends.
Is the market finally going to Netflix and chill?
Experts predicted a 2% drop in average new seller asking prices for 2023, but whoops-a-daisy – it only dropped by 1.1%. Duh. Looking ahead to 2024, experts believe we’ll see another modest decline of about 1%. Sellers will be competing harder than a Love Island contestant to find buyers. But don’t panic! According to property experts, there’s still plenty of demand from buyers trying to fulfill their housing needs. This means the London property market is returning to normal levels after its pandemic-induced frenzy. Aaand breathe.
Mortgage raters gonna rate
The housing market is certainly a wild beast, full of different local markets and their own supply and demand shenanigans. So while there might be a predicted dip in asking prices across the UK, it’s tricky to know how this will actually play out in each area. Like trying to predict the winner of The Traitors – it seems an impossible task. Last year alone, 39% of properties had to lower their asking price during the selling process which is a real lesson in *managing expectations*.
With mortgage rates especially, it’s been a rollercoaster lately, with more twists and turns than Taylor Swift’s enviable (or not so enviable) love life. But hey, on the bright side, they’ve finally steadied themselves since July. Affordability is, however, still a big issue for homebuyers thanks to those interest rates, and don’t hold your breath for any base rate cuts from the Bank of England. They’re about as likely as seeing our late great Queen Liz riding a capybara down Stroud Green Road, if a little less inappropriate.
Increased Choice for Homebuyers
Calling all homebuyers in 2024: Ready to find your dream pad? Good news – the market is finally stocked up after those (eye twitch) pandemic years. No more settling for a fixer-upper or bidding wars *cue dramatic music*. With more options to choose from, you can seriously flex your negotiation skills and take your time finding the perfect home sweet home. But don’t worry, we’re not in danger of a housing apocalypse just yet. The number of available homes has only reached pre-Covid levels recently, so there’s no need to hoard canned goods and water just yet (unless that’s your thing).
Mortgage Deals (or no deals)
Like a Noel Edmonds comeback, mortgage deals are expected to be even more lit in 2024. That’s right, rates are dropping lower than Mr Blobby doing the limbo and experts are predicting a strong start on the mortgage front with lower rates. In fact, there are already five-year fixed-rate mortgages below 4%, which hasn't happened since…well, let’s just say it’s been a hot minute.
Lenders will probably keep dishing out competitive rates to snag buyers like us at a supermarket taster tray. Even those of us without trust funds can rejoice – average rates for small deposit loans have dropped too. From a whopping 7.1% in August to a more reasonable 6.21% in December (still somewhat ridiculous, mind). It seems as though the future is looking good for all you cool cats looking to buy a new pad in 2024.
Secure that deposit, queen
As the property market in the UK continues to be a hot topic, it looks as though longer fixed-rate mortgages are becoming more popular than ever. Gone are the days of short-term commitment, as borrowers flock towards five-year deals which are now cheaper than their two-year counterparts. But let’s not forget about good old deposits – bigger ones definitely give you an advantage when it comes to better rates and accessibility. And for those with smaller savings, don’t worry – the government’s mortgage guarantee scheme is here to save the day until 2025.
Oi Londoners, listen up
But what about London, you ask? Will we finally see those elusive house price crashes that we’ve been dreaming of? Well, don’t hold your breath just yet. Experts predict a stable market in 2024, with only minor price drops according to Nationwide and Halifax. Of course, this could all change if a new scheme aimed at helping first-time buyers enters the playing field. Because nothing stabilizes a market quite like a bunch of eager new homeowners, am I right?
The UK housing market in general is still a wild beast. It’s a jungle out there, with prices swinging wildly based on factors like property type and location. Small homes are like hotcakes, while larger ones struggle to find their forever owners. This is especially true for luxury properties in London above £5 million – it’s slim pickings for buyers in that bracket.
But let’s face it, the real deal-breaker for house prices in 2024 will be the economy. Will we sink into a recession and see prices plummet? Or will stable employment and business investments keep them afloat? Only time will tell, but one thing’s for sure: different local markets will have their own unique battles to fight. While interest rates are on the rise, borrowers are getting creative with longer mortgage terms and higher monthly payments. However, first-time buyers will still need to save up a hefty deposit to get their foot in the door.
In conclusion, London’s property market is like a rollercoaster ride – exciting yet nerve-wracking. So buckle up and stay informed, because anything can happen. And remember, when all else fails, just trust your gut and work closely with estate agents who know the game inside out.
Happy hunting, future homeowners!
Click here to read our other useful guides and insights on the property market.
Contact us:
alex@daviesdavies.co.uk – Lettings Director (contact for lettings and property management)
mark@daviesdavies.co.uk – Sales Director (contact for sales, new homes and chartered surveying)
020 3820 2492
Davies & Davies Estate Agents, 85 Stroud Green Road, London, N4 3EG
Article & images by Barefaced Studios
Well, well, well, 2023 was quite the rollercoaster for our dear housing market wasn’t it? Prices dropped for the first time in over a decade, leaving homeowners in a bit of a tizzy. But fear not, sellers – it’s not all doom and gloom for 2024. Research has shown that despite the fall in prices, 93% of sellers still made a profit. Who says those pesky avocado-smeared millennials can’t be homeowners, eh? Now let’s get to the juicy part: how much moolah did these lucky sellers make? Well, the average gross gain was a whopping £74,000. That’s enough to pay off your student loans and still have some left over to feed your secret chipotle habit.
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