2024 has begun with some positive news for investors as house prices have risen by 0.7% month-on-month in January. This has pushed the average price of a property in the UK to £257,656. This seems to be yet another indicator of rising confidence amongst homeowners following the recent drop in inflation.
Robert Gardner, Nationwide’s chief economist remarked “There have been encouraging signs for potential buyers recently with mortgage rates continuing to trend down. This follows a shift in view amongst investors around the future path of Bank rate, with investors becoming more optimistic that the bank of England will lower rates in the years ahead.
“These shifts are important as this led to a decline in the longer-term interest rates (swap rates) that underpin mortgage pricing around the turn of the year. However, the partial reversal in recent weeks in response to stronger than expected inflation and activity data cautions that the interest rate outlook remains highly uncertain.
“While a rapid rebound in activity or house prices in 2024 appears unlikely, the outlook is looking a little more positive. The most recent RICS survey suggests the decline in new buyer enquiries has halted, while there are tentative signs of a pickup in the number of properties coming onto the market.
Once the property market starts to show the green shoots of recovery buyer enquiries tend to spike first amongst investors and we are currently seeing that play out across our portfolio. Many developers are now beginning to feel more confident and considering prices rises across many of the projects we deal with. Now is a good time to secure a property at an attractive price before the market really begins to rise.
