Allan's December Market Update

Published: 30/11/2023 By Allan Fuller

The latest Nationwide survey is showing signs of growth in property prices over last three months.  It had been widely reported that the sales this year has been slower with prices slightly lower and for the letting market, rents higher. This apparent dichotomy is simply a perfect example of supply and demand creating values.

 The sales market has had less demand due to increasing mortgage costs because of higher interest rates, conversely lack of rental stock and high demand has pushed rents to an all-time high.

 The outlook for 2024 is, we believe, greater stability in interest rates and potential at some point for the Bank of England to actually announce a reduction. In fact, mortgage lenders are already offering better deals.

 As for rents, we are beginning to see signs of levelling out. There is a point at which tenants cannot continuously pay more, but what is really needed is greater encouragement for investment in property that will increase the supply.
This can be done in a variety of ways, bringing back a form of mortgage tax relief would be a great help. The government plans for greater powers for local authorities to be able to control good habitable condition of rental property is also vital. This only affects a small percentage in our area but in parts of the UK is desperately needed.

 Whatever your property plans are for 2024 we are always here to help and advise, drawing on our 40 continuous years’ experience in Putney selling, letting, and managing property.