Conveyancing expert predicts new build property developments will be a priority more than ever in 2024, many with a sustainable focus to meet Net zero targets.
Daniel Chard, Partner at UK conveyancing solicitors, Bird & Co, has made his 2024 housing market predictions for the year ahead.
To combat the ongoing demand for housing, as well as Net zero targets, Daniel predicts more new build developments, with a sustainable touch, will be at the forefront of property development in the coming year.
Chard said: “ONS figures show that the total number of completed new builds appear to be going up year on year. Although it decreases in some years, the overall pattern shows an upward trend, suggesting that Local Authorities are heeding the call for more housing.
“Bristol, as well as various other cities, appear to be at the forefront of developments, prioritising new build estates, which appear to be popping up everywhere. These estates not only consider the growing concern for available housing in the UK, but appear to be taking into consideration the global concern for green ventures.
“We predict these numbers will only go up in 2024, and sustainability will be at the forefront of these building projects.”
Other trends predicted by the conveyancing firm include:
- Mortgage rates going down
- Housing demand increasing
- House prices falling and then stabilising
- Housing transactions picking up
- Landlords selling up
- AI being used the speed up conveyancing and real estate processes
The huge increase in mortgage rates this year has since seen a steady reduction, which has plateaued in October/November 2023, but we feel it may gradually reduce in 2024.
As these mortgage rates continue to decline, and the cost-of-living crisis abates, we can anticipate housing demand to increase in 2024, especially for first time buyers. This competition will encourage house prices to fall at the start of next year. Then, as mortgage rates reduce further, and housing demand rises, the market should begin to pick up, and thus we foresee house prices stabilising at these lower rates.
For conveyancers and real estate businesses looking to remain competitive and keep up with this demand, making use of AI will likely become the norm to expedite processes.
However, for landlords, the picture does not look so bright. Specifically, increased mortgage rates, changes to legislation, and the cost-of-living crisis will make the landscape too turbulent for the landlords who do not have the financial means to ride it out.
Other than selling up, their three options are to hike their rent prices to maintain their outgoings, potentially risking an empty property to await a willing tenant, to keep their rent prices low so their property remains filled and either break even or make a loss or consider renting their property out on Airbnb as a more lucrative option.
These concerns may be most stark in London, where people will be looking to move away next year. For landlords who have financial backing to see it through to the other side, they may find their investment pays off in the long-term, but it is the small-scale landlords who will be disadvantaged the greatest and will have to sell up.