By Isle of Wight Observer
Currently…
Although there were doubtful predictions last year, the residential property market maintained itself relatively well in 2023, with the Office of National Statistics recording just a 0.1 per cent fall in house prices until September.
Mortgage rates…
With mortgage rates looking like they peaked in July last year at 6.11 per cent, there is much dispute on what will happen during 2024. Capital Economics are predicting slow rate cuts by the Bank of England resulting in mortgage rates remaining around the 5 per cent mark. This will mean that many, coming off a fixed rate from the pre-2022 increase, may struggle to maintain mortgage payments.
Conflicting views…
Alongside Capital Economics’ mortgage rate predictions, they imply that these rates will in turn cause a 1.5 per cent drop in house prices in 2024, which Nationwide seem to agree with. Britain’s largest mortgage-lender, Halifax, however suggest the continuation of high interest rates will cause the property prices to fall between 2-4 per cent in 2024.
In the South…
As these predictions are for the UK as a whole, locally there may be deviations, with analysts predicting that the house prices in the South-East may in fact rise in the latter part of 2024, potentially due to a bounce back from changing interest rates.
What you can do if you’re thinking of transacting in 2024…
If you’re considering buying or selling in the new year, ensure you have the relevant professionals to hand. Mortgage brokers or lenders can provide you with up-to-date data and advice on the financial aspects, conveyancers can guide you through the legal process and talking to local estate agents to get their opinion can be useful too.
You may also find it useful to keep an eye on mortgage rates, the levels of mortgage approvals, data on repossession, arrears and varying house prices all of which can be accessed via the Office of National Statistics.
If you would like to speak to a member of the Biscoes Residential Property team, please contact us on 01983 533938.