Lloyds Bank Q1 2024 Report: A Positive Outlook for Property Investors?

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The Mortgage Lender Has Revealed More Positive Market Predictions

Lloyds Bank recently released their Management Statement for the first quarter of 2024, including some economic forecasts that have informed their business plan for the coming year.

Profits have slid for the bank as rising costs, high-interest rates, and competition in the mortgage market have made for a challenging year.

However, this report presents some interesting news for property investors. This information includes a revised projection for house price growth, in which Lloyds changed their previously pessimistic stance to a more positive prediction regarding house price growth and a more optimistic outlook on interest rate cuts.

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What is Lloyds Bank’s Forecast for the Housing Market?

As Britain’s largest mortgage lender, a strong housing market is essential for the smooth running of Lloyds Bank’s business.

Previous expectations were not optimistic; last quarter, they predicted a decline in house prices of 2.2%.

This projection has now been revised after looking at the encouraging activity seen in the housing market in early 2024. They now predict that house prices will rise by 1.5% in 2024. It is no wonder that more property investors are asking questions such as What are safe investments in 2024?

This comes as various reports and indexes find promising signs in the UK housing market in the first quarter of this year. For example, according to the Nationwide Building Society, house prices experienced the fastest three-month rise since the three months to July 2022 in Q1 2024.

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What is Lloyds Bank’s Forecast for the Interest Rate?

At the start of the year, many experts were reluctant to make optimistic forecasts about the currently high-interest rates. But when it comes to interest rate cuts, Lloyds Bank is also more positive than previously. They have forecast that the Bank of England will cut rates three times in 2024, dropping to 5.00 by the end of the second quarter, 4.75 for the third quarter, and finishing the year at 4.50.

Lloyds has also put forward the potential of a further positive revision later in the year if market conditions keep showing signs of improvement.

Wondering if buy-to-let is still worth it? For an expansive overview of the UK property market, check out some of our recent buy-to-let area guides: