What has the property market got in store for 2024?

2023 was not the most predictable of years for the property market. So, as we begin 2024, what’s in store for homeowners and movers? 

There are three questions on the minds of analysts and house buyers alike: Will asking prices continue to fall? Will mortgage rates drop, and by how much? And lastly, will housing affordability improve? 

House prices predicted to fall again  

With the average asking price dropping by 1.3% in 20231, many analysts predict prices will continue to decrease this year. While Rightmove forecasts a fall of 1%, others2 believe prices could plummet by as much as 10%. This is largely due to the ongoing cost-of-living crisis, and a pressure on sellers to price competitively in a buyer’s market. 

Tim Bannister of Rightmove commented, “In areas where sellers are struggling to attract affordability-stretched buyers or needing to sell quickly due to a change of circumstance, new job opportunity, or strong desire for a lifestyle change, we are likely to see even more competitive pricing.” 

Will mortgage rates drop, too? 

Despite mortgage rates declining in the second half of last year, the consensus is they will continue to remain high; some analysts3 predict they will not lower to 4.5% until H2 of 2024 and the Bank of England has advised to not expect an immediate dip in interest rates. There are, however, some positive signs that both mortgage and interest rates have peaked. 

Is mortgage affordability improving? 

Mortgages became a little more affordable at the tail end of 2023 – in September, the average monthly repayment for those purchasing was £64 lower per month than in July4. On the other hand, the Bank of England expects that, by the end of this year, the number of households with increased mortgage payments will have risen by 1.6%. 

Here to help 

We can help you navigate the changing property and mortgage markets in 2024. 

1Rightmove, 2023 

2finder.com, 2023  

3Zoopla, 2023 

4Octane Capital, 2023 

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.