Despite forecasts of a decline, the UK housing market is likely to recover in 2024 thanks to a competitive mortgage market and an expected Bank of England interest rate cut.
After a year of steady price drops in 2023, Knight Frank revealed that it was increasing its forecast for UK house prices to rise by 3% in 2024, from an earlier estimate of a 4% decline.
Banks, building societies and estate firms all predicted falling house values by 2024, prior to the recent three months. The official UK inflation rate has declined more than expected, and a string of unexpected monthly gains have resulted in a re-evaluation.
When their lower-interest loans expire, millions of homeowners should still prepare for a sizable hike in their monthly mortgage payments, despite the conjecture of political commentators that this would help Rishi Sunak in an election year.
As more people try to extend their leases in an effort to wait longer for lower interest rates in 2025, this is predicted to have a major impact on the rental market. Much of the real estate sector is still facing difficulties due to undersupply, but since developers are still working hard to fulfil demand, we should expect the UK market to continue expanding positively.
If you would like to know about the UK property market, speak to a member of the Elavace team today.