The summer housing market was positive, helped by confidence after the General Election and a reduction in Bank Rate, but what does the future have in store?
The outlook for buyers Rightmove’s Property Expert, Tim Bannister, observed, “The conditions are there for a more active autumn market.” Rightmove predicts that, by the end of 2024, house prices will be 1% higher than they were the previous year. [1] Meanwhile, Zoopla expects mortgage rates to stay around 4% to 4.5% for the rest of 2024. It is thought that wages will rise while house prices remain consistent, improving buyer affordability.
Rental inflation slowing Rents are now rising at their slowest rate since 2021. [2] Predictions suggest a 3 to 4% increase overall in 2024, compared to annual increases of 8% in 2023 and 11% in 2022.
2025 and beyond Looking ahead, experts predict the market to continue a slow but steady recovery. Zoopla’s Executive Director of Research, Richard Donnell, commented, “Economists currently expect base rates to fall to 3.5% by the end of 2025, which would imply mortgage rates remaining in and around the 4%+ range.
[1] Rightmove, 2024
[2] Zoopla, 2024
🚨 Data accurate as of the date of publication – 25.11.2024
🚨Think carefully before securing debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.
🚨 The above material is for informational purposes only and does not constitute a sales offer or financial advice. Before taking out any insurance, credit agreement or other financial product, you should obtain individual advice on your requirements and the general terms of the contract.
Source: Quilter Financial Planning – Essentially Mortgages Q4 2024
