Home Property Housing market running hot after 2024 recovery

The housing market underwent a sustained period of recovery in 2024, which is represented in the figures released by the ONS today.

However, itโ€™s important to bear in mind that the ONS tracks house price data on a somewhat delayed basis, so the snapshot we have hear probably doesnโ€™t truly reflect the state of the housing market in real time.

What weโ€™re seeing first-hand is that the market is running hot, with a lot of interest in buying homes and high numbers of enquiries driven by pressure from lower interest rates, and people eager to complete on their home purchases whilst these favourable conditions last.

Overall, it was a busy end to 2024, and this pace has continued into the new year, with a strong pipeline of deals already agreed.

Some nervousness may have crept in very recently over the high costs of government borrowing being reported, but this has yet to have a material impact on mortgages or peopleโ€™s ability to finance a home purchase. As long as inflation remains under control and a further cut to the base interest rate remains on the cards at the Bank of England, buyer confidence should stay strong moving forward.

There will also be an added sense of urgency amongst both buyers and sellers to get deals over the line before the changes to stamp duty come into effect on 1st April, which could potentially add thousands to peopleโ€™s costs when buying a home. First time buyers will be especially aware of this deadline, so those looking to get onto the property ladder for the first time must act now to avoid this extra burden in a market that is already pricing out many aspiring homeowners.

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