The London residential market has seen its fair share of ups and downs recently offering several housing market predictions. After a significant drop in house prices, we’ve now started to see a slight uptick in asking prices, hinting at a delicate balance between supply and demand. Despite these fluctuations, experts are forecasting marginal decreases in house prices over the year, with transaction volumes expected to stay in line with 2023 levels.
Housing Market Predictions
According to Savills, the market is showing some resilience. In May 2024, house prices grew by 0.4%, bringing the annual growth to 1.3%. This is encouraging, especially given the high borrowing costs. Future price increases are likely to depend on anticipated mortgage rate cuts, which could further stimulate demand.
On the other hand, Cluttons reports that average house prices fell by about 5.3% year-on-year by September 2023 but have since moderated to around a 2% decline. This indicates some stabilisation after a period of decline. Moreover, the undersupply of new homes continues to be a significant issue, with new home starts expected to remain low in 2024. This ongoing shortage could potentially lead to price spikes once demand picks up again.
Rental Market Insights
The rental market is also experiencing robust growth, with an 8.1% increase in rents in 2023. This trend is driven by a higher number of tenants and fewer landlords, exacerbating the housing supply issues. Read about rent vs buy here.
Outlook for 2024
Overall, while the market is showing signs of recovery and stability in certain areas, the outlook for 2024 remains cautiously optimistic. We can expect marginal price decreases and stable transaction volumes, making it an interesting year for both buyers and sellers.
For more insights and updates on the London residential market, stay tuned to our blog at [New Dawn Residential](www.newdawnresidential.co.uk).
Key Highlights on Housing Market Predictions
– Market Fluctuations:After a significant drop, house prices are seeing a slight increase in asking prices.
– Price Predictions: Experts predict marginal decreases in house prices throughout the year.
– Transaction Volumes: Expected to remain consistent with 2023 levels.
– Resilience: Savills reports a modest house price growth of 0.4% in May 2024.
– Stabilisation: Cluttons highlights a moderation in price decline from 5.3% to around 2%.
– Undersupply Issues: Low rate of new home starts expected to continue into 2024.
– Rental Market: Annual rent increase of 8.1% driven by higher tenant demand and fewer landlords.
Stay informed with the latest trends and updates in the London residential market by visiting [New Dawn Residential](www.newdawnresidential.co.uk).