Strong Start to the 2024 Property Market in Reading.
By Charlie Higgs – Owner Village Properties
With the Reading Property market having largely defied the expected and much reported crash in 2023, as property prices remained above pre-pandemic levels. The 2024 property market has certainly started much stronger than anticipated, with much media speculation of price rises and lower mortgage interest rates.
As we tentatively step into 2024, the property market seems poised for another year of transformation and evolution. With various economic, social, and environmental factors at play, predicting the future of the real estate landscape is no easy task. Although, based on the current media speculation, consistent trends are talking the property market up and not just the early signs of stronger activity but talk of price increases and falling mortgage interest rates.
Local Property Market Influences
1). Continued Shift towards Sustainable Living
Sustainability has become a key consideration for both homeowners and property investors. In 2024, we can expect to see an increased demand for eco-friendly and energy-efficient homes. Properties with green features, such as solar panels, smart home technologies, and energy-efficient appliances, are likely to command a premium in the market. As the global focus on environmental conservation intensifies, the UK property market is likely to reflect this trend.
2). Remote Work Influencing Property Choices
The rise of remote work has fundamentally changed the way people approach their living and working arrangements. As the flexibility to work from anywhere becomes a more permanent feature of the job market, property buyers are expected to prioritize homes with dedicated office spaces, high-speed internet connectivity, and proximity to green spaces. Smaller towns and suburban areas experience increased demand as individuals seek a better work-life balance away from the city.
3). Rental Market Dynamics
The rental market is expected to see a shift in dynamics in 2024. With the younger generation prioritising flexibility and experiences as homeownership proves difficult for many without the assistance of the bank of mum and dad. Demand for rental properties is likely to remain strong. Build-to-rent developments are anticipated to gain traction, offering interesting, more community based living arrangements that cater to the evolving lifestyle preferences of tenants.
4). Economic Factors and Mortgage Trends
Economic stability and interest rates will play a crucial role in shaping the property market in 2024. If the early signs of lower interest rates remain, this will stimulate the property market and encourage those buyers and sellers that have stalled their homemoving plans, due to recent higher interests, to take the plunge. This is particularly relevant to first-time buyers, who are a critical element of the market dynamic, as it is the first time buyers that are the foundation for the market as a whole.
What the Papers Say
‘House Prices now forecast to rise this year’ – 5th January 2024, The Times
In a piece by Tom Howard the article, confirms that according to the recent Halifax survey, prices rose by 1.1 per cent in December to reach an average of £287,105. And that economists now forecast that house prices will rise this year, as falling mortgage rates and the expectation of government support increase what would-be buyers will be able to afford. The expectation among most analysts had been for prices to head lower in 2024, perhaps by as much as 4 per cent. However, there is a growing consensus that house prices will more likely rise.
‘Price war hits banks as rates fall below 4%’ – 6th January 2024, The Independent
Written by Andy Gregory – The article confirms that Mortgage brokers are gearing up for “price wars” among banks vying for competition, as major lenders introduced deals with interest rates of less than 4 per cent. First Direct is launching two products at 3.99 per cent from Friday, while several of HSBC’s rates are now below 4 per cent for the first time since April, in what brokers have said “could be a sign of things to come”, after the number of first-time buyers with a mortgage hit a 10-year low in 2023.
‘Mortgage rates cut by UK’s biggest lenders as price war heats up’ – 11th January 2024, The Times
Written by George Nixon – Britain’s largest mortgage lenders have cut mortgage rates this year to below 4 per cent as competition between banks delivers further good news for homeowners. Barclays and Santander became the latest banks to make big rate reductions, cutting the cost of fixed-rate deals on Wednesday by up to 0.82 percentage points. Santander cut some of its cheapest five-year fixed-rate deals to below 4 per cent, joining the Co-operative Bank, HSBC and Virgin Money. Barclays now has the best two-year fix at 4.17 per cent for those buying a property after cutting rates by up to half a percentage point. Six of the seven largest mortgage lenders, and 31 banks and building societies in total, have made big rate cuts this year. Skipton and Darlington building societies will cut rates on Thursday, as will Halifax.
Optimistic Outlook for Local Market
With strengthening competition within the mortgage market and positive media predictions for house prices, offer valuable insights into the likely future trends for the local property market.
The positive media reporting reflects our own experience of the local Reading, Tilehurst and Twyford markets, as local buyers and sellers seem to have a real spring in their step, certainly from the first few weeks of business in 2024. Long may it continue.
Recently Listed Homes by Village Properties
Here are just a few of the properties recently listed for sale from our Tilehurst and Twyford Offices –
House for sale in Reading – Offers Over £525,000
House for sale in Reading – Guide Price £475,000
House for sale in Reading – Guide Price £475,000
House for sale in Reading – Guide Price £600,000
House for sale in Reading – Guide Price £475,000
To see the very latest homes coming to the market, click ‘New to market homes’, this lists all of the very latest homes as they come to the market.
Or see more ‘Recently Sold Properties’.
Considering a move in 2024?
If you are thinking of buying or selling a home in Tilehurst, Twyford or the surrounding areas of Reading, please feel free to call me for an informal chat, I’ll be pleased to help you if iI can.
You can also book a Face to Face Valuation, or use our Instant Online Valuation tool.
Thank you for reading
Charlie Higgs – Village Properties Tilehurst & Twyford
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