Surging Property Market: November's Unprecedented Momentum
In light of the encouraging economic forecasts, the real estate landscape in November exhibited an uncommon resilience, surpassing the market dynamics observed in September.
There is a positive shift in buyer sentiment, attributing it to the dip in inflation below 5%, the availability of the best five-year fixed-rate mortgage at a rate lower than 4.5%.
Moreover, it is possible to witness a shift in discussions surrounding the bank rate from its magnitude of increase to the timing of the next cut.
Fuelling Optimism
This newfound optimism has given rise to a belated surge in the autumn property market. It is said we should cautiously anticipate a potential upswing come spring, contingent upon the absence of a general election in the first half of 2024.
“UK house prices demonstrated their third consecutive monthly upturn in November.”
The landscape is poised for heightened buyer and seller activity, but this momentum could face a temporary disruption if a general election is called by Rishi Sunak—a factor that introduces an intriguing element of uncertainty into the equation.
London's Unique Dynamics
Notably, London is experiencing a heightened level of transactional activity, with a surge in offers, a phenomenon partly attributed to the stability of prices during 2020.
In prime central London, prices currently stand 17% below their zenith in mid-2015, while prices in prime outer London have seen an 8% decline since mid-2016. This stands in stark contrast to the national trend, where UK house prices have experienced a remarkable 19% surge since the benchmark set in February 2020.
Political Suspense in 2024
While buyer and seller enthusiasm is expected to gain momentum in 2024, this trajectory might encounter a temporary hiatus if Rishi Sunak decides to call for a general election.
The timing of such a political move becomes a pivotal and unpredictable factor, injecting an element of suspense into the otherwise promising trajectory of the real estate market.
