Is 2024 the year to buy a home?
A shift in the housing market
With so much happening over the last five years, including the global pandemic, which put a halt to construction and life for a few months as all businesses temporarily closed, the housebuilding industry kept pushing through those challenging times to emerge stronger and more resilient.
We have seen growth amongst the sector with Kellen Homes looking to build around 400 homes on a 18 acre site just north of the Manchester City FC home ground, JTP submitting plans on behalf of Dominus for a major mixed-use regeneration scheme to redevelop The Meadows shopping centre in the town centre of Chelmsford and Lovell Partnerships showing a 16% rise to its operating profit.
Miller Homes recently shared news of another newly secured site and exchanged contracts for Station Drive in Blakedown. The planned development includes 49 homes, offering a variety of property types from 2-bedroom houses to 5-bedroom homes, as well as bungalows. This latest acquisition adds to Miller Homes’ portfolio of secured sites this year, which includes developments in Badsey (98 units), Areley Common (145 units), and Leckhampton (350 units).
Lastly, Elivia Homes are going from strength to strength with a robust pipeline of over 4,500 homes and solid financial backing. The Group are on track to triple in size by 2027 to a £350m turnover business delivering 1,000 design led and sustainable homes per year.
With this positive news, we are hopeful that the industry will thrive, driving innovation and delivering much-needed homes for communities across the country.
What do house prices look like currently?
With house prices remaining high, it is challenging for first-time buyers to get onto the property ladder, and Zoopla’s stats show a 1.4% rise overall in house prices over the first 7 months of 2024.
According to the Nationwide House Pricing Index and the Government’s Office for National Statistics, the average house price was circa £100,000 in 2002 compared to 2023, when the average property was around £270,000 for an older house and £300,000 for a new build.
The comparisons…
Despite housebuilders missing the yearly ‘new build’ targets, the number of homes for sale, both old and new, is up 14%, according to Zoopla, compared to this time last year, mainly due to the drop in interest rates for the first time since 2020.
- Base rate of 5%, a 0.25% reduction
- Five-year fixed down from 6.08% to 4.87%
- Two-year fixed down from 6.61% to 5.25%
- The base rate may eventually drop down to 3.25%.
Thinking of buying your first home?
One of our Senior Consultants, Alex, and his partner bought their first home at the end of last year.
Here’s how he found the process…
“Buying our first property was both an exciting and eye opening experience. The process was definitely a learning curve – there were so many things we had to understand quickly, from mortgages and the legal aspects to renovating a 3-bedroom house. Fortunately, I had experience in Estate Agency, which helped me navigate the legal process and I’d like to say I’m fairly handy when it comes to DIY..
One of the biggest challenges was managing our expectations and budget. It was tough to balance what we wanted in a home with what we could realistically afford, especially with the costs associated with buying a property, such as legal fees, bills, and planning/build costs. However, this process taught us a lot about financial planning and discipline.
Despite any hurdles, we found the experience incredibly rewarding. There was a real sense of accomplishment in finally getting the keys to our own home, which then led to starting the renovations. Six months later, and following a lot of help from friends and family, we eventually moved in and have really enjoyed living in a space designed to our taste.
Looking back, the process was a mixture of stress, excitement, and learning, but ultimately, it was worth it. It’s a major milestone, and going through it at a young age has given me valuable insights and experience that I’ll carry forward.”
