Navigating the Property Market in 2024
Navigating the Property Market in 2024: A Look Ahead
As we step into the promising landscape of 2024, it’s crucial to reflect on the challenges that
shaped the property market last year. In our recent article in the JC, our
shared editorial highlighted the impact of fluctuating interest rates and the resulting
adjustments sellers had to make to secure timely property sales.
In 2023, the property auction scene experienced significant activity, echoing the auction boom
of 2018 and 2019. According to Essential Information Group (EIG, December 2023), the
number of properties auctioned remained consistent with that period, reaching levels
comparable to the prosperous pre-COVID era.
At Auction House London, we proudly achieved our own milestone, offering the highest
number of lots since we started trading in 2011, raising an impressive £258 million for our
clients.
An example of this success in our December 2023 auction was Lot 44, a four-bedroom split-level
flat in Leyton, London. Initially guided at £100,000+, this property exceeded
expectations, selling for a remarkable £210,000. This is a testament to the resilience and
vibrancy of the auction market.
As we enter 2024, investors may still enjoy relatively competitive fixed-rate mortgage deals.
However, the impending conclusion of these deals could pose challenges, with a potential
rise in monthly repayments prompting some investors to consider exiting the market swiftly.
This is where property auctions prove invaluable, providing a seamless solution for those
looking to make a timely transition.
Projections suggest that interest rates will remain stable as the UK Government strives to
achieve its target inflation figure. The government’s commitment to using interest rates to
mitigate inflation will hopefully create a steady environment for property transactions.
The allure of being an investor landlord experienced a dip in the past year, but there are signs
of renewed vigour in 2024. Reports from The Times (December 2023) indicate a surge in high-net
worth individuals acquiring commercial buildings in central London, intending to hold
onto these assets for the near future and explore a change of use over time. On a different
note, Property Investor Today highlights a 29% increase in searches for ‘property flipping’ in
2023. This strategy, already embraced by our existing client base, could attract new clients to
the auction space.
The evolving landscape of property auctions is noteworthy. No longer reserved for seasoned
traders and investors, auctions offer opportunities for everyone. Our team is committed to
guiding individuals through the process, ensuring a smooth and rewarding experience for
seasoned participants and newcomers.
Our first livestream auction of the year is scheduled for February 7th at 8:45. Here’s to a
prosperous 2024 filled with exciting opportunities and successful property transactions. We
look forward to sharing this journey with you