A Glimmer of Hope for the 2024 Property Market Amidst Falling Prices

The UK housing market has been navigating turbulent waters, with falling property sales and declining prices. 

However, the dawn of recovery is on the horizon as the deVere Group, an independent financial advisory firm, predicts a rebound in the market by the first quarter of 2024. 

This comes amidst challenges presented by surging mortgage rates and the Bank of England's efforts to quell inflation.

A Downturn in UK Home Sales

The UK home sales have experienced a significant fall, a trend that deVere Group has closely monitored. 

High mortgage rates and the Bank of England's response to inflation have been identified as key drivers of this downturn. Despite the easing of inflation from its peak of 11.1% down to 6.8% in July, it remains significantly above the Bank's 2% target. With interest rates expected to hit 5.5% next month, the housing market faces further dampening of demand^.

Anticipated Rebound in Q1 2024

Despite these challenges, deVere Group foresees a reversal of fortunes. They predict that the Bank of England will take measures to slow the rise of interest rates towards the end of the year, concerned about the impact of higher borrowing costs on the economy and the threat of a prolonged recession. This move is anticipated to release pent-up demand and trigger a rebound in home sales starting Q1 2024.

Opportunities for Property Investors

As interest rates begin to stabilise, deVere's property investment division sees potential opportunities for property investors in the UK market. The anticipated rebound in home sales, driven by the stabilisation of interest rates, is expected to create favourable conditions for investment. 

This sentiment is echoed by David Pett, Director of MJP Conveyancing, who suggests that the predicted rebound in home sales presents an exciting prospect for investors⁷.