By Maduka Nweke with Agency reports
Sad commentaries about United Kingdom’s property market can be discouraging. However, the current housing market offers certain advantages that should encourage potential buyers as 2024 takes off.
Here are the key things to consider if you are buying a house in 2024. There’s no doubt that high interest rates have slowed the UK housing market, but that doesn’t mean it’s all doom and gloom for home buyers.
Lower demand for houses means it’s a buyer’s market, so it’s easier to negotiate house prices. Average discounts on the asking price have hit 5.5 per cent according to Zoopla – the highest they have been in 5 years.
Lower purchase prices mean less stamp duty to pay on completion and reduced conveyance fees and estate agent fees (if you are selling a property to move).
Furthermore, rents are soaring, with Zoopla reporting that average rents for new leases increased by nearly 10 per cent over the past year.
But, despite predictions of large falls in house prices, the past year has only seen a modest drop of 1.2 per cent, with the biggest fall taking place at the end of 2022, and prices stabilising and even starting to rise since. This suggests that property remains a stable investment, particularly if you are buying somewhere to live for a substantial period.
Although mortgage rates are high and largely predicted to decrease only slowly, you could go for a tracker mortgage. This will follow the decreasing rates, leaving you gradually better off each month.