Find out what sellers, buyers and landlords could expect from this year
You may have already read that last year’s property market showed more resilience than many expected. Based on this, it would be hard to lay any big bets on what may happen next, but the market seems to be showing a good level of activity.
This is further supported by the increased buyer demand the property market is currently experiencing, as Ian Fry, National Managing Director for Estate Agency at Connells Group, highlights that “the start of 2024 has been far more positive than this time last year. Improving buyer sentiment drove a much more active December and with lenders reducing rates as soon as we returned in January, we expect this momentum to continue through the rest of January and beyond.”
Below, we share our expert thoughts on what could be the key topics this year…
What’s in store for 2024?
To give you a brief snapshot of the current housing market, Rightmove reported that in Scotland, average asking prices are currently £178,595 and experienced a whopping 5.3% year-on-year increase, but a monthly change of -1.2%. The time to sell remains very short at just 42 days, which is way ahead of all other regions in the UK. Overall, the UK experienced a 1.3% monthly increase in asking prices, now reaching an average of £359,748.
Across Great Britain, eight out of the 11 regions have, on average, higher asking prices than the previous month, with the South East having the biggest lead with +2.4%.** In Wales, Rightmove reported a year-on-year increase of 0.9% to £253,862 and a monthly increase in average asking prices by 1.1%.** The differences from region to region further exemplify how important it is to chat and work with your local agent, who will be able to advise you more specifically on what’s happening around you.
Rightmove predicts that average asking prices will decrease by 1% in 2024, as the seller’s market remains competitive.** Additionally, we continue to expect to see more realistic expectations about pricing on seller’s behalf with continued modest growth in supply of properties throughout 2024.* If you’re a buyer, this means you’ll have an even greater choice, with more opportunities to find your dream home or ideal investment.
Will the growth in the lettings market continue?
Although the supply of rental properties is slowly improving (22% higher than in 2022), the number of rental properties available is still 21% lower than pre-pandemic levels.* This, combined with high tenant demand, is driving up rental asking prices that, on average, increased by 10.4% in 2023, and are 28% higher than in 2019.* 71% of landlords, who were surveyed in the second half of 2023, confirmed this increase in demand and, as a result, are finding that void periods and time to let agreed are down.* Based on these numbers, the current expectations for the lettings market are that renters will stay put for longer, and that there won’t be a drastic increase in supply.*
Looking at the HomeLet Rental Index Report, the numbers continue to confirm the continued growth. Average rent across the UK now stands at £1,268 pcm, which is an 8.01% annual increase.** Scotland’s experiencing the highest annual growth in rental prices with 8.45%, while Wales is slightly below the UK’s average, with an annual increase of 7.7%. This means that in Scotland, average rental prices are £911 pcm and tenants are, on average, spending 28.8% of their income on rent.** In Wales, the average rent is £866 pcm, which makes up 34% of a tenant’s income.**
What lettings legislation do I need to keep an eye on?
In Scotland, on 31 March 2024, the extended Scottish Act legislation, which introduced the rent increase cap and a pause on some evictions is due to come to an end. At the time of writing, no other changes in the Scottish or Welsh lettings legislation has been brought forward.
For England, one of the main points of discussion for landlords will most likely be the Renters (Reform) Bill. The Bill had its second reading in October 2023, and has been through the Committee stage; it’s set to pass in 2024. However, before the Bill finally becomes law, it will almost certainly be subject to change as its progress through parliament continues.
Additionally, the new Right to Rent code of practice came into effect in England only on 22 January 2024. This means that English landlords and agents who do not comply with the Right to Rent laws may face higher fines. Note that tenants do not need to prove their right to rent in Wales or Scotland.
Resource: https://www.bridgfords.co.uk/blog/property-update/thinking-of-moving-this-year#/