Nicky Stevenson, the Managing Director of Fine & Country, highlights that mortgage approvals and sales volumes are rising, indicating a positive outlook for the sector.
Stevenson notes that inflation dropped to 3.2% in the year to March, with talk of a possible base rate cut potentially boosting market confidence. A survey by Dataloft reveals that nearly two-thirds of agents feel buyer confidence has improved compared to three months ago.
In March, mortgage approvals hit 61,325, the highest since September 2022, a 20% increase from the previous year. Sales are also increasing, with HMRC data showing a third consecutive monthly rise, reaching 84,200 in March. Zoopla predicts 1.1 million sales in 2024, a 10% increase from last year.
Stevenson suggests these are signs of recovery, noting a 1.1% rise in the average asking price to £372,324 in April. Lloyds Bank now expects a 1.5% increase in house prices for 2024, a shift from their earlier forecast of a 2.2% decrease. Earlier in the year, Knight Frank also revised their house price prediction for 2024, forecasting a rise of 3% by the end of the year.
Buyers now have more options as inventory hits a five-year high, with 20% more buy-to-let houses for sale on the market than last year.
However, affordability remains a concern for many. The property market in London, in particular, has been regarded as an expensive avenue for investors in 2024, with the average property price (£539,336, according to Halifax) far exceeding the national average.
Learn More: Discover how to invest in property with little money and some of the best property investments with RWinvest’s latest market insights!
