Following 2023’s property market cooldown in the wake of the mini-budget, many regions across the UK can expect to see house price rises in 2024, according to the latest predictions from the National Association of Property Buyers.
The National Association of Property Buyers says a shortage of available homes and the “low key” plans for house building next year will benefit many sellers. Spokesman Jonathan Rolande comments: “It has been estimated that, overall, all regions will experience house price falls next year, ranging between -1.5% and -4%. But with each passing week, I think these predictions are looking wider and wider of the mark. In fact I believe many towns and cities outside of London can expect to see price rises every month throughout 2024.”
The areas bucking the trend for house price rises were Halifax in West Yorkshire (3.6%), and Motherwell in North Lanarkshire in Scotland (2.4%). Mr Rolande believes these regions – along with Margate, Ramsgate, Bolton, Liverpool, Reading, Derby, York, Rotherhithe in London, and Aberdeen – will perform well again in 2024.
He explains: “These are all areas where property prices are rising. And I don’t see any evidence of that changing in 2024 given the way the market is going. Two things are driving price rises in these areas. One is a shortage of available property and the second is the fact there is no clear roadmap to housebuilding to address that supply shortage. Buyers in these spots are therefore willing to pay a little bit more as they are desperate to get their foot on the ladder. The Government’s plans for house building in 2024 are really low-key in terms of what is needed. And this will have a knock-on impact in helping prices to rise in these areas.”
Mr Rolande said London and parts of the southeast, including Essex and Kent, will find it harder to secure house price rises.
He adds: “These are the areas which have enjoyed a golden period of price rises,” he said. “That couldn’t last forever and we are now seeing prices begin to flatten and fall. If you own a property in London, Essex or Kent you are still in a brilliant position as it is likely to be worth a lot more than you paid for it. But the days of being able to make huge profits on properties in these areas are gone. They may return of course, but they are unlikely to in 2024.”
Housing is set to become a key battleground in the coming General Election, suggesting that both of the main political parties could unveil reincarnations of the Help to Buy scheme.
Mr Rolande concludes: “This could also help prices to rise. A new Government can often inject a feel-good factor into the market and into the economy. After a challenging 2023, this will be welcomed by those working in the sector.”