Sponsored Editorial by Aldo Sotgiu, managing director of Wards

As we wrap up this transformative year in the housing market, it's great to note that many of the main challenges we expected didn't hit as hard as we thought.

Despite early concerns, the market has proven resilient, showing a more positive outlook than we initially imagined and I thought I’d use this opportunity to give my views on the market and how things might look in 2024 (but don’t hold me to it!)

Taking a closer look at new properties and overall supply, at Wards we believe we are seeing a return to the stability of 2019 – a time of a strong and healthy market. This is a welcome change from the recent past when a lack of supply sent asking prices soaring.

While prices have dipped a bit, the housing market remains lively because of a wave of new sellers aiming to set prices below the competition but well-priced properties are still finding eager buyers.

The initial worry about the housing market at the start of the year was mainly due to uncertainty, something the market typically dislikes.

Factors like the aftermath of the challenging autumn mini-Budget, the perception of rising interest rates and cautious lending from banks added to market volatility and affected buyer affordability. Looking ahead to 2024, the challenge of buyer affordability is something I anticipate being a persistent problem.

What’s different now though, is that there's a noticeable shift toward calm and predictability as we head into 2024.

Inflation is coming down, we still have very high levels of employment and, interest rates – although high against recent standards – are looking stable, so buyers and sellers can make a decision based on some amount of certainty.

This newfound stability gives both buyers and sellers a more solid foundation for decision making, a refreshing change from the uncertainty we faced earlier in 2023.

Many are now feeling more confident as there's a growing consensus that the Bank of England base rate may have peaked.

Looking ahead to the New Year, I anticipate a continuation of the trend from the last six months – subdued yet stable.

Barring any surprises, like the wildcard of an upcoming election, there's no strong reason to expect major shifts in the market. This more predictable landscape gives stakeholders the chance to plan with greater confidence.

Cheers to a steadier and more reassuring year ahead!

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