2024 is well and truly here, and the Birmingham property market is already making a strong start in January. So, what’s happening in the UK property market? Read on to find out.

House Price Increases Since December

Homeowners looking to put their properties on the market this January could benefit from house price increases. There have been predictions of 3% increases over those from the end of last year, as the prospect of potential cuts in the interest rate alongside more affordable mortgages are likely to result in more transactions taking place.

After 2023 saw sustained falls in house prices, it was forecast before the year end that 2024 would experience a further drop of 4%. However that now appears to have been a premature estimate. An increase in the number of mortgage approvals being received over recent months is now believed to translate into a minimum increase of 10% in transactions over this year.

Since December, new sellers’ asking prices have increased by approximately £4571, which represents the largest growth for this time of the year since pre-Covid times. Although overall prices are still 0.7% lower than those from a year ago, experts say that this year’s start looks quite promising as buyer demand is growing, and 15% more properties are coming onto the market. According to Rightmove, the beginning of the month saw a fifth more sales being agreed than this time in 2023 which indicates buyer confidence is returning.

Forecasters have also predicted that house prices are unlikely to drop significantly before the end of the year, with a decrease of only around 1% nationally being expected by December 2024 thanks to an underlying strong level of buyer demand.

Competitive Pricing Crucial For January Sellers

Although the increase in asking prices is good news for January sellers, it’s important to bear in mind that competitive pricing will be crucial when it comes to finding a buyer. Even though the month so far has seen growth in buyer activity, the amount of properties being listed on the market is still outpacing the number of purchasers making enquiries. That means realistic and accurate pricing for properties for sale in Birmingham lies at the heart of securing a sale, and sellers should resist the urge to over-optimistically price their UK property.

Cheaper Mortgage Deals

Although Howard Davies, chair of NatWest sparked criticism with his statement earlier this month that it wasn’t ‘that difficult’ to get onto the property ladder, buying a home will still be unaffordable for a significant number of prospective purchasers in 2024. Yet there is some promising news on this front.

Mortgage deals are already becoming a little cheaper, with 5-year fixed-rate mortgages now averaging at 4.86%, down from a peak of 6.11% last July. Rates are also expected to reduce further in the weeks and months ahead, with the best deals coming in under 4%. It has been predicted that borrowing costs will be cut by the central bank from its existing 5.25% rate to under 4% by this time in 2025, and that should reduce the cost significantly of taking a mortgage out.

Mortgage Time Bomb Potentially On The Horizon

Although those taking out a new mortgage may benefit from reduced costs, a mortgage time bomb could potentially be on the horizon for the millions of UK property owners who are coming to the end of their cheaper deals. Around 1.5 million homeowners will face a considerable increase in the amount they have to repay every month, and that could mean an average family having to find an extra £1800 a year to cover their housing costs.

A Strong Start To The Year

With growth in the market thanks to more affordable mortgage deals and an increase in UK property prices, 2024 is getting off to a buoyant start this January. As we head towards spring, it will be interesting to see just how well the experts’ predictions pan out, and whether February will be an equally positive month for landlords and sellers alike.

What Next?

Haven’t yet found your dream home? I can help you find it!

Looking to put your Birmingham property on the market? I can help you sell it!

If you are planning a move and would like more information regarding property for sale in Birmingham, Dean Coleman Estates Limited would love to help you move this year.

Email me at dean.coleman@exp.uk.com or call on 07581 875215. I’m looking forward to helping you with your next move.