All about informed opinion in our 2024 property forecast

TOM Bill, Head of Residential Research at Knight Frank, says buyers and sellers could be forgiven for thinking that the economic news in the final quarter of 2023 was too good to be true.

Yet it is. He says: “Inflation below four per cent means speculation has turned to the number of rate cuts in 2024 rather than whether they have peaked.

“Money markets were pricing in five cuts of 0.25 per cent last week. As a result, mortgage lenders have sent their own positive message to the property market. "The Halifax and Leeds Building Society both made material cuts to their rates last week, which was followed by HSBC announcing a sub four per cent deal on a five-year fixed rate mortgage.”

Meanwhile, Simon Gammon, head of Knight Frank Finance, adds “The best rates are currently around four per cent but I would expect to see more products starting with a three fairly soon.”

The caveat is that mortgage lenders margins are tight and while they are trying to stimulate the market after a poor 2023, don’t expect considerably lower rates any time soon.

The changing picture means some economists have revised their house price forecasts for 2024 and Knight Frank plan to do the same shortly.

As ever, we have put together our own, Yorkshire based forecast for the residential property market. We ask local estate agents and property experts what they believe will happen to prices and activity in their area of Yorkshire this year. The result is a good long read and we hope you enjoy it.

This week’s edition of Property Post also has advice on probate and a catch-up with the exceptional Sky-House Co, a Sheffield based developer with several differences from the norm and all of them are good.

Its remit is great architecture, sustainability and homes that work and feel great.