According to critics and lenders, UK house prices are expected to drop in 2024, while the cost of leasing a home will continue to climb.
Price and Rent Projections:
Government forecasts anticipate a probable decline of nearly 5% in property prices, although lenders anticipate a more moderate downturn.
Meanwhile, property experts speculate a potential surge of 5-6% in rents for newly-let properties, following a year marked by significant escalations.
Impact on First-Time Buyers:
While falling prices could seem advantageous, the anticipated rent hikes might curtail the benefits for prospective first-time buyers. Many tenants express difficulty in saving for a deposit due to escalating living costs, limiting their ability to transition from renting to homeownership.
Economic Influence:
Predictions of a lacklustre economy in 2024 are expected to exert influence on the housing market. The subdued economic landscape, coupled with job market uncertainties, could dampen the confidence of potential homebuyers and individuals considering relocation.
Mortgage Rate Expectations:
Higher-than-usual mortgage rates are foreseen, affecting approximately 1.6 million homeowners whose fixed-rate deals are due to expire in the coming year.
This shift may lead to a significant increase in monthly repayments for many, potentially impacting household budgets.
Lending and Arrears Projections:
UK Finance, representing banks and lenders, anticipates a decline in mortgage lending and foresees a rise in the number of individuals facing arrears. Projections suggest an 8% drop in UK lending for house purchases in 2024, reflecting potential changes in the lending landscape.
