How is the property market fairing with higher interest rates?
It’s been a bit of a roller coaster this year with 10 interest rate rises and for the first time now this year there’s been a halt in rises, so how is this affecting the property market?
London Central - Currently a -2% reduction in property values compared with last year when we had a 2.4% increase. Predicted value for next year a 2.0 increase in values so we look like we have reached the lowest point.
Outer London & the Suburbs - Current -8% reduction in property values compared with last year when we had a 16.75 increase in values. Predicted property values for next year a 1.0% increase in values so as with Central London property values have reached their lowest point, but Central London showing the better recovery rate in property values for 2024.
The South - Currently 0.5% increase in property values compared with last year when we had a 18.6% increase in values. Predicted property values for next year 2.5% increase in values so again property values are set to increase at a similar rate to Central London, which may spear on those couples who may wish to start a family and move out of the London area.
The North & the Midlands - Currently -0.5% in increase in property values compared with last year when we has a 13.7% increase in values. Predicted property values for next year 3% increase in values in line Central London so those starting a family may wish to move out of London.
What does this mean for property owners?
We appear to have reached the lowest point in property values as interest rates remain at the current level or reduce in value, although the London area will be the slowest to recover and areas outside London are predicted to have the highest growth.
It remains important that your property is sound and well-maintained. If a move is out of the question then ground floor extensions, roof rooms or garden rooms are often a solution to give people more space. However, it is important to use the services of qualified property professionals for planning and project management where the proposed build is properly managed and observed objectively in order to be successful.
