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Local Property Market Predictions for 2024

By Steve Cook – Partner Clarke Gammon

The Local Property Market, Media Predictions and What to Expect in 2024

The property market has always been a subject of great interest and speculation. With the start of the new year, it’s natural for those with an interest in property, whether you’re a homebuyer or homeowner considering a move this year, to wonder what lies ahead.

As regular readers will know, I have been known to be critical of the Media and their often negatively biased reporting on most things property, which is generally high on their agenda. Although this new year they do seem to have seem to have turned over a new leaf, with some very positive comment on both the property and mortgage markets.

What’s the media saying

‘UK house prices forecast to rise 5% in 2024’ – 2^nd January 2024, The Times

The article confirms that ‘analysts say, the predicted fall in base rates will fuel a rebound in the property market’.

The piece goes on to say that house prices are set to rebound this year as falling mortgage rates and the prospect of the Bank of England cutting the cost of borrowing reverse a dip in property values. Steadily falling mortgage rates and an expected surge in customer demand will push up house prices by 5 per cent in 2024, according to estimates from Pantheon Macroeconomics, the consultancy. Andrew Wishart, senior property economist at Capital Economics, said that another year of declining house prices could be “avoided altogether” as the economy improves.

‘Record number of sellers come to market on Boxing Day’ – 4^th January 2024, Rightmove

The article confirms that even before the new year began, some home-sellers started to get their 2024 moving. Just one day after Christmas, on Boxing Day, we saw a record number of homes listed for sale. More than 10,000 new properties came to market, which is the biggest number of new sellers in one day since 2011.

Many sellers planned ahead to get their homes ready to put on the market in time to capture the new wave of interest from buyers from Boxing Day and into the new year. So if you’ve been looking for a home to buy, you’re likely to find you’ve now got more to choose from.

Visits to Rightmove nearly doubled between Christmas Day and Boxing Day. The level of demand from potential home-buyers, measured by the number of enquiries sent to estate agents about homes for sale, jumped too, and more than tripled (+273%) from Christmas Day to Boxing Day. There were also 17% more buyer enquiries on Boxing Day than the year before.

‘House Prices now forecast to rise this year’ – 5^th January 2024, The Times

In a piece by Tom Howard the article, confirms that according to the recent Halifax survey, prices rose by 1.1 per cent in December to reach an average of £287,105. And that economists now forecast that house prices will rise this year, as falling mortgage rates and the expectation of government support increase what would-be buyers will be able to afford. The expectation among most analysts had been for prices to head lower in 2024, perhaps by as much as 4 per cent. However, there is a growing consensus that house prices will more likely rise.

‘Price war hits banks as rates fall below 4%’ – 6^th January 2024, The Independent

Written by Andy Gregory – The article confirms that Mortgage brokers are gearing up for “price wars” among banks vying for competition, as major lenders introduced deals with interest rates of less than 4 per cent. First Direct is launching two products at 3.99 per cent from Friday, while several of HSBC’s rates are now below 4 per cent for the first time since April, in what brokers have said “could be a sign of things to come”, after the number of first-time buyers with a mortgage hit a 10-year low in 2023.

‘Mortgage rates cut by UK’s biggest lenders as price war heats up’ – 11^th January 2024, The Times

Written by George Nixon – Britain’s largest mortgage lenders have cut mortgage rates this year to below 4 per cent as competition between banks delivers further good news for homeowners. Barclays and Santander became the latest banks to make big rate reductions, cutting the cost of fixed-rate deals on Wednesday by up to 0.82 percentage points. Santander cut some of its cheapest five-year fixed-rate deals to below 4 per cent, joining the Co-operative Bank, HSBC and Virgin Money. Barclays now has the best two-year fix at 4.17 per cent for those buying a property after cutting rates by up to half a percentage point. Six of the seven largest mortgage lenders, and 31 banks and building societies in total, have made big rate cuts this year. Skipton and Darlington building societies will cut rates on Thursday, as will Halifax.

Optimistic Outlook for the Local Market

The optimistic outlook, strengthening competition within the mortgage market and positive media predictions offer valuable insights into the future trends and dynamics of the property market, helping us anticipate what to expect.

The positive reporting matches our own experience of the local Guildford, Haslemere and Liphook markets, as local buyers and sellers seem to have a real spring in their step, certainly from the first few weeks of business in 2024. Long may it continue.

Considering a home move in 2024?

The new year has seen strong demand for properties across our office network with many motivated buyers looking for a new home in the local Surrey and Hampshire areas.

If you are considering a move please feel free to contact any of our offices, either for an informal chat about the market and how we might help you with this or to book a market appraisal.

To see the very latest homes coming to the market, click ‘New to market homes’, this lists all of the very latest homes as they come to the market.