As we approach 2024, you may be wondering if it's the right time to delve into the property market. The property investment industry is constantly evolving, and staying ahead of trends is key to making informed decisions. With the market showing signs of stability and growth, 2024 might be a pivotal year for property investments.
Market Trends and Economic Indicators
Recent analyses predict a stabilisation in the property market by 2024, following the rollercoaster of the past few years. Economic indicators, including GDP growth, unemployment rates, and consumer spending, are showing signs of recovery, which traditionally bodes well for the property market. This stabilizing trend may create a more predictable environment for long-term investments.
Interest Rates and Mortgage Accessibility
Interest rates, a crucial factor in property investment, are expected to balance out in 2024. The easing of mortgage lending criteria by banks is also anticipated, making property investments more accessible to a broader range of investors. These changes could open doors for both first-time investors and seasoned landlords looking to expand their property portfolio.
The rental market is predicted to continue its upward trend in 2024, with increasing demand for rented accommodation. This rise in demand can lead to higher rental yields, making buy-to-let investments particularly attractive.
As of December 2023, the UK housing market is experiencing some notable shifts with house prices dropping to 2% lower than a year ago. In addition to this, according to Zoopla, there has been a significant increase in the discounting of asking prices from an average of 3.4% in the first half of 2023 to 5.5% in November. This combination could mean that house prices will continue to fall throughout 2024, meaning property investors could get more for their money.
With careful planning and a keen eye on market developments, 2024 could indeed be a rewarding year for property investments.