FIVE QUESTIONS ABOUT THE 2024 PROPERTY MARKET......

WILL PRICES DROP OR RISE?

It is famously difficult to predict house prices in anything but the short term but I’ll have a go anyway!

We entered this year under a cloud of uncertainty as the fallout from the Autumn mini-Budget filtered through resulting in lower activity levels.

There appears to be more calm and certainty heading into 2024, and the annual fall of 1.1% in asking prices highlights the market’s much-better-than-predicted resilience.

With improved stability there are signs that some home-buyers​, who had put things on hold during the fallout from the mini-Budget, are now ready to put their plans into action.​ We’re seeing early signs of more activity in the ‘family mover market’, with demand for three and four-bed homes up by 9% versus the post-mini-Budget period of this time last year. 

We may end 2024 with almost no growth but it could be far worse – a free fall predicted by some, looks ​more and more unlikely.

WILL RENTS RISE FURTHER IN 2024?

Inflation in the rental sector will slow as rents reach their peak affordability. (Thank god!)

The market will remain competitive with too many tenants chasing too few properties, an issue that has resulted in rents being driven to record highs and exacerbated as many already in a rented home are choosing not to move because the market is so difficult.

Although an increase is not predicted, a drop would also seem unlikely considering the lack of property.

'Buy to Let' is still in a bad shape and could continue to be so for some time keeping a lid on the investment market 

IS A NEW GOVERNMENT GOOD FOR THE MARKET?

The current Government will inevitably try to generate a feel-good factor which may temporarily boost the market​. The arrival of a Labour Government would usually strike fear into the hearts of investors and developers, many of whom would run to the nearest exit​, however, the property market has been in such a dreadful state for years now, a moderate Labour administration may be welcomed if measures are finally put in place to increase stock and equality in the sector.

Any change will cause some jitters, but a change of Government ​might be a positive thing​?

HAVE WE SEEN THE END OF RATE RISES?

With the Bank being independent, rates should not be adjusted to assist in an election campaign​, based on the property market and inflation data alone, I do​n't think there is a case to reduce rates ​just yet but we shall see!

After years of gradual increases, a static rate for the year would be very welcome!

IS IT BEST RIGHT NOW TO BUY OR RENT?

This is a question I get asked a lot. It’s complicated, not least because nobody can say for sure whether prices will fall or rise in the near future.

To those asking the question, the Rightmove tagline is a good place to start – ‘there is never a perfect time to buy, just the right time’.

In other words, don’t worry too much about the short-term ups and downs, it isn’t worth putting life on hold for that​, buying can be more cost-effective now that renting is so expensive and you’ll feel more secure in your home. 

​If you would like to discuss your plans please give me a bell or drop me an email Jason

jason@homesofcornwall.com. 07968641892. 01209 711118