WEALTH: A strong start to the housing market for 2024, but will it continue? Here's why Eyeedul Haque believes so #147

EP147:  2024 has started well for the UK property market, as there is definitely an appetite for property. 

House price forecasts for 2024 remain relatively positive, with most institutions believing that prices will remain flat. In December, Knight Frank had initially forecast a decrease of -4% for 2024, but have revised this forecast to +3% growth for the year.

House prices: Nationwide, Halifax and Rightmove have reported: -1.8%, +1.7% and -0.7% over the last 12 months. What is interesting is that Halifax and Rightmove show that prices increased from last month (on a monthly basis). Halifax reported increases over 3 consecutive months. ONS figures show increases of -2.1% nationally and -6% in London. 

Rental market: Rents have increased by 8% nationally and 6% in London. They are predicted to increase by 25% over the next 2 years, as more people will be renting due to the higher cost of borrowing.

Interest rates: The Bank of England rates have remained on hold at 5.25% for the fourth consecutive month, and is forecast to reduce rates as early as May 2024. 

Mortgage rates: Lenders have started to reduce the rates available on 2 and 5-year fixed terms, as they predict that BoE rates will decrease to around 4% over the next two years. 22 lenders have reduced rates since January and there are more than 10 fixed rate deals where the rate of interest has dropped below 4%.

 What is the outlook: Eyeedul believes that prices will remain constant for the next 6 months, but some areas may see slight decreases (around 3-5%) but it does depend on the area and type of property. He believes we're in a buyers’ market and there are opportunities to take advantage of. The current market conditions will not last that long, as we know that as soon as BoE rates reduce, people will start buying property again as confidence returns.

 Stamp duty: it has been muted that if Labour are elected in at the next General Election in the second half of the year, they will increase SDLT for overseas buyers. There is already a surcharge of 2% over the existing stamp duty bands, but Labour will increase this further. 

CONNECT WITH EYEEDUL
Website: https://myproperty-consultant.london/
LinkedIn: https://www.linkedin.com/in/eyeedul-haque/
Instagram: @eyeedul_mypropertyconsultant

HOSTED BY: Nicole Bremner is an investor, certified financial coach, nutritionist, author and mum-of-three. In 2009, having had a successful career in financial services, like many women who take a ‘career break’ to have children, she found herself at a crossroads, not entirely sure what path to take next. Combining her financial knowledge with her passion for good architecture and design, Nicole was able to build on her experience and expertise to develop a new career, which fit around her children, and spent the next decade building a multi-million property portfolio in London. Now she combines her passion for property, financial literacy and health into this top raked podcast.

CONNECT WITH NICOLE
Website: http://www.nicolebremner.com/podcast
LinkedIn: https://www.linkedin.com/in/nicolebremner
Instagram: http://instagram.com/nsbremner