Are property prices going to drop in 2024 – and if so, by how much? What about the demand for new properties? Whether you’re looking to move in 2024 or are thinking about investing, it makes sense to do your homework first.
Buying or selling in 2024? Here’s what you should be aware of…
Demand for properties
Properties will still be bought and sold next year, however, the question over whether the number of homes sold subject to contract (SSTC) will drop – and if so, by how much – remains to be seen.
What does this mean for sellers in 2024?
Although the demand for new properties weakened in 2023, largely due to rising mortgage rates, sales were being agreed with an estimated one million properties SSTC in 2023 – 5% higher than 2019.
However, according to Zoopla, the number of homes in the process of being sold was at its lowest in 4 years at the end of 2023.
If you’re looking to sell your home this year, you shouldn’t be deterred from doing so. When you work with a professional agent like us, we’ll position your home correctly to find the right buyer to suit your next steps.
Property prices
According to Zoopla, the average UK house price fell by 1.2% in 2023. The east and southeast of the UK experienced the largest drop, at 2.6% and 2.4% respectively, followed closely by London at 2%. This shows that higher value properties, such as those found in London, aren’t falling more sharply than other properties.
In Scotland, property prices increased by 1%, which is largely due to the lack of new properties on the market, which is still below pre-pandemic levels.
So what will happen with property prices next year? According to Richard Donnell from Houseful, it’s likely property prices will drop next year, however it won’t be by much.
Rightmove agrees and has predicted that asking prices will drop nationally by an average of 1% in 2024.
Curious to find out how much your home is worth? Book a valuation today.
What does this mean for sellers in 2024?
If you’re serious about selling your home next year, you will need to be realistic with your asking price from the beginning in order to tempt more buyers to make an opening offer.
It is telling that in November 2023, one in four sellers were willing to accept a 10% reduction in asking price to get them moving (Rightmove HPI). The best thing sellers who are motivated to complete next year can do is:
Work with a professional agent
Find someone who truly understands your local area and understands you, asking questions about your next steps.
… and trust them
Your agent will understand all aspects of your sale – from your buyers’ position to the market at large. They will work with your buyer, offering financial advice from a mortgage partner, to find out if there is any room to increase their budget.
Set a fair asking price
Price as competitively as possible to get viewers through the door. Your agent should encourage buyers to get any offers on the table soon and then increase their offer through negotiation.
What will buyers look for in 2024?
Location, location, location
Buyers are moving further afield than ever before. According to Richard Donnell, this is particularly true in the southeast where buyers are moving more than 10 miles to find their perfect home.
What does this mean for sellers in 2024?
If you’re looking to sell next year, it’s important to consider this when marketing your home. If you’re in a rural area outside of London, speak to your agent about how to make your home attractive to these buyers.
When you work with us, our close ties with other brands throughout the UK will help you get to where you’re going. Whatever your next steps, speak to your local branch today and let us get you moving.
Property features
Buyers, particularly those with property to sell, will wait for the right property which has the features they’re looking for.
Buyers are increasingly focussing on property must-haves. According to Rightmove, buyers are looking for homes that offer:
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Open-plan living
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Energy efficiency such as ground or air source heat pumps, solar panels and EV charging
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Separate living rooms or snugs for children
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Bifold doors to the garden
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Orangeries
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South-facing gardens
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Garden office and other work from home areas.
What does this mean for sellers in 2024?
If you have a property feature that buyers are looking for like a work from home solution, kitchen island, or open plan living – really showcase this in your marketing.
When you work with us, your agent will only ever use the best tools – such as professional photography, videos, 3D tours and drone footage – to showcase your home. This way you can make the most of those special features.
First-time buyers
It’s likely that first-time buyers will still dominate the buying market in 2024 as rising rents encourage more to take their first step on the property ladder.
Rightmove estimates that a third of all homes are sold to first-time buyers. In November 2023, they found that the number of sales being agreed for typical first-time buyer homes – such as studio, one-, and two-bed properties – was just 7% lower than 2019’s level, compared to four-bed detached houses and all five-bed plus properties, which were 14% behind.
What does this mean for sellers in 2024?
If you’re selling a typical first-time buyer home, you should make sure your agent positions your home for this audience. Think about what your home can offer a typical first-time buyer – whether that’s room to add value or a dedicated space for hybrid working – and make sure this is emphasised in your marketing.
Downsizing
With more retirees and an ageing population, there is arguably now a greater motivation to downsize.
More homeowners, who have built significant equity in their homes, are looking for ways to put this money to good use – whether it’s dealing with pressures of the cost of living, taking a step back from their careers, or helping younger relatives to buy their first home.
Thinking of downsizing? Let us help.
What does this mean for sellers in 2024?
There may be more buyers deciding to downsize, which would raise the demand for smaller properties like bungalows and maisonettes. It is no secret that bungalows have steadily been growing in popularity over the years. In May 2023, demand for bungalows was 11% higher than the same period in 2019 (Rightmove).
If you are selling a smaller property, make sure our agent positions your home correctly. As with first-time buyers, think about what your home can offer a typical downsizer – such as great transport links or single-story living for those with reduced mobility.
*Data supplied by Zoopla and Rightmove HPI December and November 23.
