What 2024 could have in store for the property market

THIS year has started with a bang, and we had a very busy January.

The number of buyers who registered with us was up 50 per cent compared to January 2023 and the number of viewings conducted and offers made were both up 30 per cent on the same time last year.

A positive start like this gives me optimism about the rest of the year and I think the market will remain stable throughout 2024.

After the post-pandemic boom and a rocky 2023, this year will see a return to normality, and we will see buyer activity levels returning to what they were in 2019, along with modest house price rises of between one and four per cent.

Last year, demand was subdued as inflation soared, interestratesroseand high mortgage rates stretched affordability.

However, this year, we’re seeing inflation dropping and interest rates stabilising, with many predicting rate reductions.

This has led to mortgage lenders offering more competitive mortgage rates and uncertainty about further rises and sky-high mortgage costs is going away, leading to increased buyer confidence.

Demand is still far outstripping supply too, which is helping to drive the market.

This will continue this year and for years to come because the government keeps missing its build target and nowhere near enough new houses are being built.

Our ageing population is also restricting supply, as older people are staying in larger, family homes for longer due to the costs associated with downsizing.

The big unknown for 2024 will be the general election, but I feel that it will be positive for the housing market as competing parties come up with new plans to boost it in order to woo voters.

There is also going to be an early Budget in March where I think we’ll see the Government announce tax cuts and potentially introduce new policies designed to grow the market too.

Even without any specific market-related policies, a tax cut will be enough to bolster the sector as people will have more money in their pockets to spend on housing.

All in all, 2024 looks set to be a positive, stable year for the market. To help strengthen it even further, I would like to see the following things happen:

1. A stable government being elected, with a stable leader. We have had five Prime Ministers over the last seven years and even more Housing Ministers, which has resulted in instability at the top and a lack of well thought out policies being delivered.

A strong government and leader will stabilise the housing market and the UK economy as a whole. 2. More homes being built. We need a serious overhaul when it comes to planning. Rules need to be derestricted to help speed things up and property developers need to be incentivised to build more homes, more quickly.

3. Help to unlock the top end of the market. We need to see the introduction of policies designed to encourage older people to downsize to free up larger, family homes. A stamp duty reduction for downsizers could help.

4. I’d like to see interest rates come down and then remain settled to help improve mortgage affordability and increase buyer confidence.

5. A mass transport system. Leeds is one of the only major UK cities without one. It would help boost the Yorkshire economy.