HOUSE PRICES TO FALL AND RENTS TO RISE IN 2024 The Government’s official forecaster said property prices were most likely to drop by nearly 5%
UK house prices are expected to fall in 2024, according to analysts and lenders, while the cost of renting a home will continue to rise.
The government’s official forecaster said property prices were most likely to drop by nearly 5%, although lenders expect less of a fall.
Rents on newly-let properties could increase by a further 5-6%, property experts say, following a year of sharp rises.
That would limit the benefit of falling prices for potential first-time buyers.
Many tenants say they have been stretched by soaring costs, limiting the ability to save for a deposit among those wanting to buy a home.
A lacklustre economy is being widely predicted for 2024, and that is likely to feed through to the housing market. A less secure jobs market could affect the confidence of people wanting to move or buy a first home.
Added to that is the expectation that mortgage rates will remain higher than many people have been accustomed to. A further 1.6 million homeowners will see their current fixed-rate deal expire over the next 12 months, the vast majority of whom could see their monthly repayments rise sharply.
UK Finance, which represents banks and lenders, said it expected mortgage lending to fall, and for more people to fall into arrears.
It predicts UK lending for house purchases will drop by 8% in 2024.
