Why Invest In Your First UK Property In 2024?
As the New Year is in full swing, many of us are starting to make plans to meet our long-term goals – for many, this means taking steps towards achieving financial aims. Whether it’s achieving financial freedom, having a little more passive or disposable income, or planning an early retirement, property investment is a fantastic way to achieve your financial goals for the new year. Better yet, 2024 is an exceptional time to invest in your first UK property and explore the property market if you have not done so before – here are four reasons why you should invest in your first UK property in 2024:
Mortgage Market Improvements
Since the pandemic, inflation, the Bank of England base rate, and mortgage rates have all skyrocketed. This has made purchasing property less attainable for homeowners and investors alike – but this is set to start reversing across 2024.
Last year, the two-year fixed rate peaked at 6.86%, and has already come down to 5.59% – an impressive feat that is anticipated to continue. In fact, mortgage advisors predict that rates will sink below 5% by the time 2024 ends. This positive movement is occurring as inflation begins to inch its way back to more ‘normal’ levels, with inflation in January 2024 currently sitting at 4%. Although this is still double the Bank of England’s aim of 2%, this already represents a marked improvement since January 2023 when inflation sat at 10.1%, demonstrating the positive trajectory that the UK economy is undertaking. With the economy on track for recovery throughout 2024 and beyond, property investment has never been more lucrative.
Tenant Demand Remains High
The property market doesn’t thrive without demand: thankfully, demand for viable rental properties is as high as it has ever been as 2024 starts. Despite over 212,000 new dwellings being built last year, there remains a huge gap between supply and demand. A study carried out by NRLA demonstrates this, with their findings showing that demand for property in Q3 2023 was 300% higher than in Q3 2019.
In short, there are far more searching tenants than there are available properties, which bodes exceptionally well for budding property investors whose buy-to-let units will be in high demand. This is especially the case in high-density city cores and regions of regeneration where demand for property is high.
Related: Emerging Property Markets In The UK In 2024
Property Prices Start To Dip
At the time of writing, the average property price sits at £264,400 according to Zoopla, with this being a dip of 0.8% over the past 12 months. Additionally, Zoopla have seen approximately one fifth of sellers accepting offers where up to 10% has been negotiated off the asking price, demonstrating that 2024 is certainly a buyer’s market and a fantastic time to start investing.
However, this is not expected to be the case forever. The aforementioned improvements to mortgage rates, the base rate and inflation will soon cause a change in fortunes for sellers, bringing more searching buyers to the market and causing enough competition to eventually increase property values in the long-run. So, if you are considering investing in property, it would be wise to explore your options sooner rather than later.
Impressive Forecasts
Lastly, property market forecasts for 2024 and beyond are looking exceptionally bright, demonstrating that property remains a sensible long-term investment. By 2028, JLL predicts that the average UK property will see a price increase of 14% – that means that if today’s average property value sits at £264,400, the same unit will be worth £301,416.
The same JLL research suggests that by 2028, rental values will have increased by 22.8%, with a 5% increase due in 2024 alone. This is not only a testament to the huge demand for rental properties in the UK, but showcases just how lucrative property investment in 2024 is set to be.
Related: UK Property Market Forecast 2024
Are You Ready To Start Your Investment Journey?
2024 and beyond is certainly looking bright for new and existing property investors – but will you take the leap and invest in your first UK property this year?
If you’ve decided that now is the time to start investing, get in touch with our team of property investment experts today. With an abundance of investment guides, accessible resources and years of experience in helping people take their first steps towards property investment, Joseph Mews is your ideal investment partner. What’s more, you’re sure to find a property for you within our range of carefully selected off-plan investment opportunities across the UK – explore them here.