UK Housing Market 2024: What to Expect for Tenants and Landlords

As we progress through 2023, the UK housing market continues to display resilience and undergo transformational changes, setting a dynamic stage for what tenants and landlords can expect in 2024.

The past year has been marked by fluctuating interest rates, changes in buyer preferences post-pandemic, and ongoing government interventions aimed at stabilizing the market.

Market Overview

The housing market in 2023 has seen significant trends that are likely to influence the landscape in 2024. Notably, there has been a stabilization in house price growth following the explosive rises seen during the pandemic, as remote working drove a surge in demand for larger homes away from urban centers. However, as Britain returns to more traditional working models, we observe a slight cooling in these previously hot markets.

As we progress through 2023, the UK housing market continues to display resilience and undergo transformational changes, setting a dynamic stage for what tenants and landlords can expect in 2024.

While we see market normalization, underlying factors such as limited supply and the green agenda will continue to shape the housing market landscape in 2024.

Predictions for 2024

Looking ahead to 2024, here are several predictions based on current trends:

• Interest Rates: If the Bank of England continues with its current trajectory, we can expect a stabilization of interest rates by early 2024, which could bring more certainty to mortgage rates and potentially increase buyer affordability.

• Supply and Demand: The supply of new homes is expected to gradually increase as government initiatives and construction efforts aim to meet the ongoing housing demand. However, the growth in supply is unlikely to outpace demand significantly, suggesting that prices may not drop drastically but should stabilize.

• Urban Resurgence: With a shift back to office work, urban areas may see a resurgence in demand, especially for rental properties, which could benefit landlords in major cities.

• Green Housing: Increasingly, both legislative requirements and consumer demand are driving a push toward more energy-efficient homes. This trend will likely escalate, affecting both new builds and existing properties.

What Tenants and Landlords Can Expect

• Tenants will likely benefit from more stabilized rent prices after the sharp increases in previous years. Additionally, tenants might see better quality in rental offerings as landlords invest in making properties more energy-efficient and compliant with new regulations.

• Landlords should prepare for the continued enforcement of energy efficiency standards, which may require upfront investment. However, these improvements can be seen as long-term benefits, increasing property value and attractability.

Interesting Housing Facts

Interesting Facts:

• Average house prices have increased by approximately 10% from early 2022 to mid-2023.
• Rental demand in city centers has rebounded by 15% as employees return to office-based work.
• Green homes premium: Properties with high energy efficiency ratings are selling at a premium of up to 6% compared to less efficient homes.

Expert Insights

According to a recent report by the Royal Institution of Chartered Surveyors (RICS), “While we see market normalization, underlying factors such as limited supply and the green agenda will continue to shape the housing market landscape in 2024.” This statement underscores the ongoing transformation in the market, driven by both economic forces and environmental considerations.

Conclusion

As we look toward 2024, the UK housing market appears poised for a period of stabilization and gradual growth, influenced by economic policies, shifts in work patterns, and increased emphasis on sustainability. Both tenants and landlords need to stay informed and agile to navigate these changes effectively. Jenkins Estate Agents is committed to providing our clients with up-to-date information and expert guidance to help them succeed in this evolving market landscape.

What are your thoughts on the current situation for the UK Housing market? Do you have some predictions for what is to come for the remainder of 2023? 

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