The summer housing market was positive, helped by confidence after the General Election and a reduction in Bank Rate, but what does the future have in store?

The outlook for buyers

Rightmove’s Property Expert, Tim Bannister, observed, “The conditions are there for a more active autumn market.” Rightmove predict that, by the end of 2024, house prices will be 1% higher than they were the previous year1. Meanwhile, Zoopla expects mortgage rates to stay around 4% to 4.5% for the rest of 2024. It is thought that wages will rise while house prices remain consistent, improving buyer affordability.

Rental inflation slowing

Rents are now rising at their slowest rate since 20212. Predictions suggest a 3 to 4% increase overall in 2024, compared to annual increases of 8% in 2023 and 11% in 2022.

2025 and beyond

Looking ahead, experts predict the market to continue a slow but steady recovery. Zoopla’s Executive Director of Research, Richard Donnell, commented, “Economists currently expect base rates to fall to 3.5% by the end of 2025, which would imply mortgage rates remaining in and around the 4%+ range.”

In terms of broader trends, it is expected that energy efficient homes and houses located near public transport will continue to be highly sought after. Employment flexibility widens the search area in terms of where people are looking to move and achieve the quality of life they want.

1Rightmove, 2024, 2Zoopla, 2024