So, is UK property a good investment in 2024? According to Nationwide, the start of the year has brought optimism to the market, with experts observing promising signs for the rest of the year.
Robert Gardner, Nationwide’s Chief Economist, said:
“Activity has picked up from the weak levels prevailing towards the end of 2023 but remains relatively subdued by historic standards. For example, the number of mortgages approved for house purchase in January was around 15% below pre-pandemic levels. This largely reflects the impact of higher interest rates on affordability. While mortgage rates are below the peaks seen in mid-2023, they remain well above the lows prevailing in the wake of the pandemic.
“With cost-of-living pressures easing as inflation moves back towards target, consumer sentiment is improving. Indeed, surveyors report a pickup in new buyer enquiries and new instructions to sell in recent months. Moreover, with income growth continuing to outpace house price growth by a healthy margin, housing affordability is improving, albeit gradually.
“If these trends are maintained, activity is likely to gain momentum, though the pace of the recovery is still likely to be heavily influenced by the trajectory of interest rates.
Learn More: Read more about the UK property investment scene with our dedicated buy-to-let area guides covering topics such as available investment property in Rotherham and Oldham investment properties.