UK Property Market Predictions and Trends for 2024
2023 was a bit of a roller coaster year with plenty to discuss, not least politics, the economy, and the property market. With Knight Knox being a property investment consultancy it has always been important to assess how will the spring budget inform our UK property market predictions.
Analysing the performance of the property market in the UK last year, it didn’t reach the highs of 2022 and post-pandemic, but it was steady and showed some real reason for optimism, not least in buy-to-let and the alternative property investment market.
Here are our predictions for 2024 and what UK property investors can expect from the year ahead.
UK property market Interest rates to continue to drop as Inflation gets better
There’s already news this week that interest rates are starting to return to normal. That should continue throughout the year as inflation continues to fall, thanks to a return to normal economic structures.
Despite the ongoing war in Ukraine and global pressures, there is an indication now that fuel prices and food inflation are coming under control. This appears to be allowing inflation to reduce, which is in turn reducing mortgage rates – something that should hopefully continue.
So what does this mean for the UK market? There should be an increase in demand for first-time buyers and those upsizing who can more easily afford mortgage rates. This will likely mean increases in property prices.
Foreign investment continues to come in
Many foreign investors are turning their attention to the stability of the UK property market after years of fluctuation and instability in numerous international markets.
The Chinese market, for example, remains a little more unstable than most. Property prices are crumbling amidst national uncertainty and the government continues to scramble to stem the bleeding. Europe’s Eurozone economy, meanwhile, has downgraded its growth forecast on a few different occasions.
That would indicate that the recent levels of foreign investment into the UK from abroad will continue. This will, of course, mean good news for investors and the market at large as further demand benefits both capital appreciation potential and rental growth for the foreseeable future.
The government will make things easier for landlords in the Spring Budget
With the pressure building on the government and the housing crisis for available affordable rental properties not easing up, the expectation could be some announcements in the Spring budget that will bring some relief for landlords and encourage some more investment into the market.
Of course, it is early days, but stay tuned to our newsletter and social media channels to be the first to hear about any Spring Budget announcements and what they mean for the property investment market!
Alternative UK property investment is predicted to increase in popularity
Finally, it’s been a pretty big year for alternative property investments such as assisted living and holiday rental properties, and in terms of UK property market predictions, this is likely to continue into 2024.
The favourable tax breaks, the high returns, and the good occupancy rates have these ranking highly on most investors ‘to-do lists for the new year. Others may not but are likely to investigate, at the very least.
If you are looking to expand your portfolio in 2024, why not get in touch with us today? We are proven specialists with 20 years of experience, allowing us to make the investment process as simple as possible. Get in touch today to find out how we can help you reach your investment goals today!
