How the property market is shaping up in 2024

The cost-of-living crisis, high energy bills and high interest rates seem to have most of the nation in an uncomfortable grip. There can be few who aren’t feeling the pinch and, naturally, this has an impact on the health of the property market.

So, we’ve had the budget, we’re all waiting on a date to be announced for the General Election, how is the property market looking at the moment?

What impact did the budget have?

Despite rumours that stamp duty tax rates might change and whispers of a 99% mortgage scheme being introduced, Jeremy Hunt failed to mention either. And, unfortunately, there was little to make life easier for first-time buyers who are really struggling to get onto the property ladder. Temporary stamp duty thresholds are still in place but, unless they are made permanent in the Autumn, higher rates of stamp duty may well return next year.

If you’re thinking of jumping on the Airbnb wagon (other holiday accommodation platforms are available) and fancy buying a holiday home to rent out, the tax perks will be changing in 2025. This is an attempt to prevent housing stock being bought up for the purposes of tourism and local residents feeling the squeeze when it comes to availability of long-term rental properties. And for landlords in the private rented sector, multiple dwellings relief has been scrapped.

What about interest rates and mortgages?

The Bank of England continues to endeavour to balance interest rates and inflation in order to keep the economy on an even keel. Towards the end of 2023, mortgage rates were beginning to come down, but the last couple of months has seen them rising again due to an unexpected rise in inflation. Mortgage experts are hopeful that this will begin to ease and that the property market will see more confidence.

Is there much movement in the property market?

It might not feel like it but buyer activity at the beginning of the year was actually more buoyant than January 2023. Indeed, the beginning of 2023 was fairly dire, with mortgage rates impossibly high and many who had hoped to move simply put on the brakes. Roll on a year and demand has risen again. Properties are now coming onto the market in greater numbers and buyer enquiries have increased. Agreed sales by mid-February were 16% higher than the same time last year. Affordability will continue to be a key driver for anyone hoping to move but there does seem to be more optimism generally.

Property prices and getting the price right are influencing how quickly things are moving. Some sellers are finding that their properties have been priced too high and get little attention until the price is reduced. Homes do seem to stay on the market for longer than usual at the moment. Buyers are being more careful, waiting for the right property at the right price for them – with mortage payments that won’t stretch them to the extreme.

Traditionally, the spring months are when the property market really starts to get busy and it does look like that will be the case this year. If you’ve already found the house of your dreams and are ready to arrange for a building survey, why not get in touch with Home-Approved! < https://www.home-approved.com/contact-us/>