The cost-of-living crisis will continue to cast a shadow on property purchases in 2024, but the market may “bottom out” by the summer.
Although budgets continue to be squeezed, potential cuts to interest rates, as well as lower house prices in some locations, could
provide new opportunities.
Lucian Cook, of estate agents Savills said: “We anticipate 2024 to be marked by continued constraints on buyers’ budgets.”
“But the prospect of interest rate cuts towards the end of the year means we expect the market to have bottomed out by the summer.”
Savills forecasts that house prices will fall by around 3% in 2024. Rental prices are expected to rise by 6%.
Meanwhile, property website Rightmove predicts that new sellers’ asking prices will be 1% lower by the end of 2024.
Property expert Tim Bannister said: “However, this is likely to be felt differently across local markets.
“In areas where there are fewer homes for sale, and more discretionary sellers, we may see new seller asking prices remain flat, or even very slightly increase compared to this year.”
Simon Gerrard, managing director of London-based Martyn Gerrard estate agents, predicted: “The clouds that have lingered over the property market appear to be clearing and we’re beginning to see daylight.”
