Market Summary 2023 and 2024 Forecast
Last updated: 9.02am, Sunday 14th January 2024
We look in detail the 2023 property market for sales, rent, inflation, interest rates and to what we expect in 2024.
by Gordon Campbell
January 2024
Inflation Down, Unemployment Down, Mortgage Rates Down, House Prices Up, Rents Up
There is a lot of news and noise about the UK property market.
You need to drill down and into the detail to see what is really happening and not get consumed by the usual mainstream media click-bait doom and gloom headlines the media is all obsessed about.
As the saying goes “bad news sells newspapers”!
This blog shares valuable and important information to the continued underlying strength of property, especially when you get people who know what they are doing working with you.
House Prices
In 2000, the average house price was £75,000. This has increased exponentially and now stands at £260,000.
UK House prices are 65 times higher today than they were in 1970.
Property is very regionalised and localised so do not take any media headlines as what is going on.
The properties we sell in the main area are yet again one of the highest growth areas in the UK.
Annual House Price Growth in Our Main Area: The Highest in Scotland at 12%
House prices will quadruple within the next generation
More demand for sales and rent. That will not change.
Prices will continue to go up.
Rents will continue to go up. We have seen that in 2023 by rents for new properties coming to the market in the Glasgow area increasing by 16% in the last year.
More demand than supply.
Scottish Rental Market
Average rents in Scotland for new tenancies have risen by double digits for the third time in a row since 2023.
The Scottish market, driven by Glasgow is the best performing in the UK, comparable to London.
1 bedroom flats are the highest in demand in the Glasgow area. 12 days to let!
Meantime, open market rents continue to increase across Scotland recording an overall 13.7% annual rise as at Q3 2023.
The average property to rent in Scotland, having surpassed the £1,100 per month
The average property to rent in Glasgow now takes 19 days.
12 days average to let a 1 bed , 15 days for a 2 bed.
Inflation
Inflation in the UK continues to fall, the economy is growing, and unemployment is low.
The rate at which prices are rising dropped to 3.9% in the year to November, down from 4.6% in October.
Inflation Forecast
BoE expect inflation to fall further and be at their 2% target by end of 2024.
In 2000, the average house price was £75,000. This has increased exponentially and now stands at £260,000.
UK House prices are 65 times higher today than they were in 1970.
Mortgage Lenders
With inflation under control and dropping like a stone in the UK, the major mortgage lenders have already dropped further their rates.
Others will follow soon and this will lead to a ‘mortgage war’, as the large appetite for house purchase continues.
This will lead to all sectors including international lending as well, we expect.
Good news for all.
Forecast for 2024
- House prices continue to rise in Glasgow. We forecast a 4 to 7% increase.
- Rent levels up in Glasgow. We forcast a rise of 6 to 8%.
- Inflation down. Government target of 3% or below to be met.
- Mortgage rates down. Mortgage war will drive rates down to below 4% for UK nationals. International rates will follow with reductions.
- Continued shortage of properties available for sale from estate agents.
SummaryWe will continue to give you an unfair advantage over local investors by offering you;
Off market, below market value properties, strong rental demand, high yield and in one of the highest capital growth area in the UK.
Despite the challenging circumstances under which it has had to function, the market has recently shown itself to be extraordinarily robust, yet again.
That is fuelled by more demand than rent due to the continued strong local and diverse economy and that makes it different from the overall UK house price picture.
That is why the Glasgow property market for sales and Buy to Let rent is one of the most robust in the UK and offers the best value for money, yields, returns, capital growth.
If you want to have an unfair advantage to start or add to your property portfolio, then please get in touch and we will help you.
Alliance Property Group. Making a Difference