One leading property boss has placed his bets on Rotherhithe as London’s prime hotspot for purchasing property in 2024. This revelation comes against a backdrop of varying forecasts for the UK’s housing market.

Rising Prices Against the Odds

Contrary to the gloomy predictions of widespread house price falls in all UK regions, ranging from -1.5% to -4%, a more optimistic outlook is emerging. Jonathan Rolande, a spokesperson for the National Association of Property Buyers, challenges these forecasts, suggesting that many towns and cities outside of London might see consistent price rises throughout 2024. This prediction defies the earlier expectations of a downward trend in property values.

The Exceptional Areas

Certain areas have already been defying expectations. Halifax in West Yorkshire and Motherwell in North Lanarkshire, Scotland, have witnessed increases of 3.6% and 2.4%, respectively. Rolande believes these areas, along with Margate, Ramsgate, Bolton, Liverpool, Reading, Derby, York, Rotherhithe in London, and Aberdeen, will continue to see property price growth in 2024.

Two Major Drivers of Price Increases

Rolande attributes the rising prices in these areas to two main factors: a shortage of available properties and a lack of a clear roadmap for new housebuilding. This scarcity is pushing buyers to pay more to secure a property, eager to get a foothold in the housing market. The government’s understated plans for housebuilding in 2024 are expected to further fuel this trend.

A Shift in the South East

However, London and parts of the South East, including Essex and Kent, face a different scenario. These areas, which enjoyed a sustained period of property price increases, are now witnessing a plateau or even a decline in prices. Homeowners in these regions are still in a favorable position, as their properties are likely to be worth more than their purchase price, but the era of making substantial profits seems to be waning. Rolande notes that while this trend may reverse in the future, it is unlikely to do so in 2024.

Political Influence on the Housing Market

With housing poised to become a central issue in the upcoming General Election, both major political parties might reintroduce schemes similar to Help to Buy. Rolande anticipates that a new government could inject a sense of optimism into the market and the economy, which could be a boon for the housing sector after a challenging 2023.