What to expect from the property market in 2024

Buying a house is a highly personal decision, especially when considering that a house is the biggest single purchase most people will ever make. 2023 has been a challenging year as many people took a more cautious approach to both buying and selling, and it remains to be seen how the property market will unfold in 2024.

What we are seeing are subtle signs suggesting we might be slowly emerging from the worst and that this is the right time to buy a house as property prices and interest rates fall.

In this blog post, we take a closer look at what could be in store for the property market in 2024

How will the interest rates evolve in 2024?

Over the past year, prices have been highly affected by the decision of the Bank of England (BoE )to raise the cost of borrowing from a record low of 0.1 per cent to a 15-year record high of 5.25 per cent. 

Yet, the decision to keep the Bank Rate steady since August brought back some stability and today, mortgage rates are expected to continue to decline- slowly- in the coming months. 

What are the latest UK mortgage rates?

The average SVR is at 8.19%, while the two-year fixed deal now stands at 5.95%, and the five-year fixed deal now stands at 5.57%, according to Moneyfacts. While we cannot predict significant interest rate cuts, the continuous decline allows all prospective buyers to think about their next move.

Will mortgage rates continue to decline?

The latest data from Moneyfacts, shows mortgage rates have fallen for the fourth consecutive month. The average rate for a two-year fix is now below 6pc, down from 6.85pc in August, while the average rate for a five-year fix is 5.55pc. Further findings show product choice has also increased to 5,694 options, the highest level of availability for 15 years.

Fixed mortgage rates have continued to drop across all loan-to-values (LTVs), month-on-month, on two-year and five-year fixed terms. It is hoped the fixed-rate cut momentum continues into 2024. If it happens, this will offer a big boost to borrowers.

How will property prices change?

There has been a dramatic increase in the price of residential properties in the United Kingdom (UK) and across Europe since the start of the Coronavirus pandemic. Prior to July 2022, the annual house price change peaked at 14 per cent in the UK.

While economic conditions, heightened inflation, and unemployment remain, it is hard to assess the extent to which market activity will be maintained. Nationwide expects prices to remain flat or decline by up to 2 per cent in 2024, while 

Halifax, has forecasted a decline in house prices of some 2 to 4 per cent in 2024.

The uncertain conditions are expected to keep pushing house prices downwards in 2024, and the decline in pricing, along with the decline in mortgage rates, will start making buying more affordable.

How to buy a house in today’s property market

If you’re considering purchasing property in 2024, it’s definitely worth exploring. Begin by identifying the type of property that suits your needs and assess your current financial situation. Use our mortgage calculator to approximate your monthly payments, allowing you to better gauge how comfortably it aligns with your budget. Remember that you can get a better mortgage deal if you have a lot of equity or a deposit of around 40% of the property’s value.

How to buy a property with Muir Homes

Let our experienced team bring you a step closer to a brand-new home. We’ll take care of everything from start to finish so you can relax and enjoy your new home. Contact us today, and you could be moving into your dream home sooner than you think. Our team of advisors are always on hand to answer any questions you might have. We look forward to hearing from you.