‘Window of opportunity’ beckons in New Year property market

There is an opportunity before an expected General Election next year for property buyers and sellers to get some business done.

That’s the view of Tom Bill, head of UK residential research at Knight Frank, (main picture) who believes the economy will pick up in the New Year.

“Looking to 2024, there is a window of opportunity for buyers and sellers as the economy settles and before a General Election is called,” he says.

A General Election has to be called by Prime Minister Rishi Sunak by January 2025 at the latest.

Abolish Section 21 evictions

Bill warns there could be uncertainty in the rental market after a General Election, especially if a Labour Government decides to act quickly, and abolish Section 21 ‘no fault’ evictions immediately, for example.

“The one safe bet is that a Labour government would not introduce rent controls, having publicly ruled them out,” he says.

Anthony Codling, MD of equity research at RBC Capital Markets and non-executive director of Twindig, says he expects the housing market to warm up next year.

Reacting to news from Land Registry that house prices fell by just £3,000 (1.2%) in the last year, he says: “The housing market is still challenging, but with inflation falling, the prospect of Bank rate (and therefore mortgage rate) cuts edges ever closer.

Early indications are that in 2024 the housing market may start to warm up”.

“During 2023 the temperature of the UK housing market has been frosty, but the early indications are that in 2024 the housing market may start to warm up.”

Nick Leeming, chairman of upmarket agency Jackson-Stops, agrees that the housing market has shown resilience, and is optimistic about next year.

“We expect a minor reduction in property values at worst, under 5% over the year, which will bring some house prices back in line with pre-pandemic levels,” he says.