2024 Housing Market Forecast | How Far Will Property Prices Fall?

In need of a Property Market Update For 2023 and a 2024 Housing Market Forecast?

In this brand new Property Education video, Simon Zutshi breaks down a summary of all the 2023 Property News alongside sharing his Property Market Prediction for 2024.

With Bank of England Rising Interest Rates reaching 3.5% last year, and then almost doubling again this year, many buy to let Landlords with variable rates on their BTL mortgages found themselves in the situation where the monthly interest on their BTL Mortgages was more than rental income coming in from the Buy to let property.

Simon explains why Section 24 is a major contributing factor as to why there are Landlords Selling Up and expediated by this Mortgage Interest Rates Crisis.

What are The Best Property Investing Strategies For 2024? As part of his UK Property News recap, if you want to know How to Become a Successful Property Investor right now, Simon

encourages you to consider HMO Property and Service Accommodation as part of your Property Strategies.

How Far Will Property Prices Fall in 2024? Despite UK House Price Predicted to Fall next year, Interest Rate Predictions will be the biggest problem unless interest rates start to fall.

So Should You Buy Now Or Wait? Simon recommends that if you know what you are doing after following the correct Property Training, you should definitely buy now as there will be many Motivated Sellers. If a Property Deal meets your Buying Criteria, you need to act quickly to secure your property purchase before it gets snapped up by another property investor.

To keep up to date with changes in the property market which affect your property investing make sure to plug into your local pin monthly property networking meetings here, using the code YOUTUBE: https://www.pinmeeting.co.uk/

Hello, It’s Simon Zutshi here and in this property education video I want to give you a property market update for 2023 and a property market prediction for 2024. Now, I’ve been investing in property since 1995 and I’ve been teaching people like you how to become more successful investors for the last two decades.

I’m also the author of Property much of the Amazon Number one property book, and also I’m the founder of the Property Investors Network, the largest networks of coffee makers in the UK and also now in the Netherlands, and also now into buying as well.

So in this video, what I want to share with you are three things I’m going to talk about inflation rates. I’m going to talk about interest rates and I to about the effects on the property market and what’s happened this year in 2023. And my property market prediction for 2024.

So first of all, let’s talk about inflation. During COVID, the government spent a huge amounts of money, so everyone expected we were going to have problems with inflation the following few years, and that certainly happens at the beginning of 2023. We had inflation that was double digit inflation.

Now inflation has been halted at 4.6%. The government and we should not in particular said it’s going to reduce and half inflation. He’s achieved that. They’re very happy about that. But the problem is the 4.6% is still double the 2% target that the Bank of England wants.

Now, the Bank of England use their interest rates as a macroeconomic tool to control inflation. So when inflation goes up, they increase interest rates to try and bring inflation down because they slow the economy down. And when inflation comes down, they bring interest rates down again.

So obviously this high inflation caused interest rates to go up. And we saw this interest rate hike starting in February 2022. And throughout 2022 we had interest rates go up to about 3% in December 22, and they just just went up to 3.5% just as the year changed over into 23.

So really in this last year, we’ve had another almost 2% increase in interest rates up to two two sorry, 5.25%. So in other words, in the last two years we’ve had rates go from the very low half percent up to 5.25%. Now, what does that mean for the property market?

Well, you have a lot of landlords and investors who have buy to let mortgages. Now, if someone has a fixed rate mortgage, obviously interest rates going up has no effect until they come to the end of that fixed rate period. 25% of properties in the UK have no mortgages at all,

So they’re obviously not affected. But a lot of landlords had variable mortgages and the reason they had variable mortgages was maybe they’d got a mortgage prior to the last financial crisis. The last property market crash was in 2008 and they might have got a mortgage then.

And when the property market crash came in 2008, what happened was the banks all brought their interest rates down. So a lot of people who were on fixed rate mortgages when they came off those fixed rate mortgages onto the standard variable rates, they were paying a very low interest rate.

And that was the case for about a decade. So many investors got used to having very low interest on their buy to let property mortgages. They were making lots of cash flow even from single led by two lets. And so they just left the mortgages where they were.

And I think people didn’t really notice the interest rates starting to creep up. Of course it was in the news, but they didn’t really feel the effects of them very much. But in this last year, in 2023, where we see rates go up from three, three

And a half percent up to over 5%, the situation for many landlords who’ve had these variable mortgages is suddenly they’ve got buy to let properties where the interest they’re paying on a monthly basis on their buy to let mortgage is actually more than the rental income coming in for the property.

Now we’ve seen about 10% growth in rental rates over the last year as well. So that’s obviously helped. But there are still landlords who have properties where they’re paying more in interest than they are in rents. Now, obviously, a lot of those people think, you know what

With all the talk about changing regulations, abolition of 20 section, 20 ones, they’ve been talked about a lot this year, a lot of landlords deciding maybe now is the time to sell up and get out of the property game. So that’s had a lot of landlords putting their properties on the market.

By the way, they’ve been doing that consistently since about 2015 when the Government first announced their plans for Section 24 and that came into force in April 2017. And Section 24, of course, is where if you own property in your own name, which most of the 2 million landlords used to do,

And if you have mortgages, which again most landlords have, and if you’re a high rate taxpayer, which not all but many landlords are, some of you paying a lot more tax on your property income. Now, a lot of people I guess, didn’t notice it when it first came in 2017.

It was phased over four years and it’s only really been the last couple of years where people have felt the pinch of, well, actually they’re getting a lot less profits from their property investments. And particularly we have this double whammy where suddenly this year we’ve seen landlords

Pretty much the rate they’ve been paying the mortgage has pretty much doubled. It means they’re not actually making any cashflow profit from their property and yet on paper they are making a phantom profit. So the end of next tax year, these landlords are going to have to pay some money to HMRC.

So that’s not a great scenario. So that’s why many landlords are either selling their properties, maybe they’re incorporating it put into a company which isn’t affected by section 24 or they’re changing their properties. A change in the use. Maybe if there are larger properties that change them into HMO houses

Of multiple occupation or they’re turning to short term serviced accommodation, both strategies have a really high cash flow. And those two strategies, by the way, are my recommended strategies for the current property market. They’re both very high cashflow. There’s really good demand for both them and they’re cost effective

For the tenants in the HMOs and the guests in the serviced accommodation. So my big tips great to do are service accommodation and HMO for the 2024 property market. So this affects on interest rates. Becoming very expensive means that many clients will be looking to set up.

And also, you’ve had lots of homeowners. Some homeowners have had their home mortgages when they come off the fixed rates double, triple or even quadruple. And some of those people just cannot afford those properties. So part of my prediction for 2024 is I think there’ll be a lot more people,

Unfortunately in financial difficulty, unable to afford their mortgage payments and probably more repossessions happening. That’s why someone can’t afford to pay the mortgage and the lender takes the property back. However, I’m pretty sure that the government has said to banks and mortgage companies, Look,

You need to be flexible, you need to be tolerant. These are difficult times for people. You can’t just take the property back. You really need to work with property owners to hopefully avoid repossession. I think it’ll be very bad publicity for the government if there’s a massive increase in repossessions,

That’s not good news, particularly in 2024 when people are probably going to see a next general election. Now, also general election might be something that affects the property market. A lot of the things that the Conservative government have done I don’t think have actually been very supportive to free enterprise and entrepreneurs.

I mean, Section 24 and itself is a very unfair policy. However, if the Conservatives don’t win the next election and who knows what’s going to happen, They want to make this all political. But if they don’t win and the Labor Party get in, it’s a bit

Concerning about some of the things the Labor Party are talking about in terms of if you are a property owner, things like massively increasing the amount of capital gains tax we pay when we sell a property, maybe introducing things like rent capping which have done in Scotland, which is of course

A real problem in Scotland. I think the Labor Party would try to do something of that here as well. So I think it’s been an interesting situation over the last couple of years. Many landlords want you to sell up, which by the way, is a really good for us.

It’s one of the reasons rents have gone up so much. It’s because of less rental stock available and we have an increasing population in 2023 I think was something like half a million people emigrated into the UK. Some of those legitimately, some not.

So it’s just me with a problem we’ve got with all the boat people. So the point is you have to remember that we live on this island with a limited amount of accommodation and an increasing population. So over the long term

We always see property prices and rents will go up over the long term. But you’ve got to remember property prices do not always go up. Property is a cyclical market, prices go up and they come down. We saw the last property market crash in 2008.

Many people were predicting that we would see a property market crash in 2023. I didn’t think we’d see that. I think we’re seeing a correction. And let’s now talk about what’s happened to property prices over 2023 and what might happen in 2024. Am I Market prediction.

So if you look at Halifax, who’s the biggest mortgage company in the UK, they regularly produce reports on the property market and they were reporting in the summer the prices were down about three and a half, 4% compared to last year. However, the last couple of months, October,

We saw a 1.1% increase in property prices fell by about £3,000, up to just under 282,000. And then in November there was another half a percent increase. Now we don’t know what’s going to happen to December on film. This video, the figures on out.

Yeah, we’re going to wait till January to see what happens. I doubt we’ll see a property increase I think the first few months of the year in 2024, we’ll see prices come down marginally. If you look at a whole year on average, prices are only 1% lower than they were a year ago.

And actually property prices are still the average property is £40,000 more than it was pre-COVID. I expected prices to correct back to pre-COVID prices, and that hasn’t happened yet. So I was wrong in that estimation. But we’ve got a bit of time next year. My personal view, my property market prediction for 2024

Is that we will see property prices probably come down a few more percent, I believe, and we might see a bit of a increase activity in spring 2020 for Springs, where a lot of people think about moving and selling properties. More properties come on the market, there are more buyers.

But the biggest problem is going to be around interest rates and it depends what happens to inflation as to how fast interest rates come down. I don’t think we’re going to see interest rates come down. Probably until cure Q4. So Q2 quarter two of 2024 when interest rates start to come down,

I think that will be a real signal and there’ll be a real surge in the property market. So I believe the first few months of 2024, we’ll probably see prices come down because we’ll probably still have inflation higher than the target rates of 2%.

The Bank of England has to have high interest rates relatively to the last decade, and that makes affordability a problem for homebuyers and also affordability a problem for landlords where the rental income just doesn’t stack up. So these problems are going to persist until interest rates finally come down.

So if I had to put money out, I would expect that by the end of 2024 overall, the market will suit itself. I think we’ll see prices start to rise. I wouldn’t be surprised if they’ve come down a little bit by then.

But also I would hope that interest rates start to come down and I think we’ll probably get to more like a target rate of three or 4% for the Bank of England base rates, but that may not be until 2025. So should you buy now or should you wait?

Question I’m always asked my personal view is if you know what you’re doing, if you’re educated and you find a good deal that meets your criteria, I would just buy it now. So a fundamental thing you want to do is work out what are a buying criteria,

What area do you want to buy and what type of property you want to buy, What kind of cash flow do you want to make? What kind of return on investment do you want to make as well? And if it makes your criteria buoyant, don’t worry, when I could wait

It it might be a bit cheaper in a few months time. Well, that might be the case, but if it’s a good deal, someone else is going to snap it up. So you need to be an action taker. You need to be decisive if you want to be a successful property investor.

So my view is get educated, make sure you get your buying quite so right. And if you see a good property, you snap it up. I can tell you my personal property market prediction for 2024 is I don’t really mind what happens to the market,

But I am going to be picking up a lot more property this next 12 months. I probably have in the last few years because I think there’s still lots of motivated sellers, people who really need to sell some things. I talk about in property magic, we find people who’ve got a problem

Not to take advantage, but to help them try and solve their problem. Come up with an ethical win win. If you give other people what they want, they’re far more like to give you what you want. I think it’s made a credible opportunity.

I’m going to share my journey over the next 12 months on this YouTube channel, so I do hope you join us. So if you like this one, you find it useful. Please hit the like button kind of comment below. I’ll come and answer as many questions as I can.

Also, please subscribe to the channel. Also hit the bell icon to make sure you don’t miss out on the updates as I bring them out. So the final thing I would say to you is if you want to really boost your property investing success in 2024, you need to grow your network.

The bigger your network, the more people you know in your industry, the more successful you will be, more opportunities you will come across. The more people you can work with, the more people are going to help you. So one of the easiest ways to grow your property network

Is by attending the Property Investor Network meetings. They happen all over the UK in the evenings during the week. We also have meetings in the Netherlands and Dubai and also coming very soon, Brazil as well. And we’re expanding over Europe in 2024 as well. But if you’ve never been to a paid meeting,

You don’t know what you’re missing out on. Everyone there is interested in property. You have to be real, completely new. People are very experienced. Everyone is welcome and we make everyone very welcome. We’ll introduce you to other people. And the more people you meet, the more success we were going to be.

So I really encourage you click on the link below, which is to pen meeting Decoded UK. All the meetings are listed there. It’s 20 £25 to come along. Not an expensive investment, but if you’ve never been before, we love you to come along as our guests. Just as a thank you

For watching this YouTube channel and come and see if it’s right for you. So all you do is go to pen meeting dot CO to UK, Select your local meeting. You can do the date and time and then scroll down to the bottom

Of the page where you would normally pipe click on where it says Pay with a voucher code and then use the code YouTube. You should go to YouTube along with your details and it will send you a confirmation email to confirm your booking.

Make sure you look out for the email, check your spam box will put the date time into your diary, Get along to your local pay meeting and see what you’ve been missing out on. I’d like to wish you a very happy New Year.

I think 2024 is going to be an incredible opportunity for some of us. Fortunes are going to be made in 2024, and I hope you’re in that group as well as ever. I encourage you to invest with knowledge invest with skill. Hello, It’s Simon Zutshi here.

I do hope you just enjoyed that YouTube video. And you know what? If you really want to move forward in your property investing, it’s much easier to do it with the help of other people. And one of the best things you can do is go to your local property investor

Network meeting where you can meet other like minded people. You can learn some of the very best strategies and really get a motivational possible every single month about what you could achieve from your property investing. Now, there are 50 plus meetings around the UK. We’ve got meetings in the Netherlands,

We’ve got them in the UAE as well, and growing around Europe. So all you have to do is click on the link below this video, go to PIN meeting Skoda UK. All the meetings are listed there. Click on the one that’s closest to you. See when the date and time is.

And if you want to attend that meeting, you can just buy a ticket. Or if you want to come as my guest to your very first meeting, just use the voucher code, which is the word YouTube, because obviously you’ve watched the YouTube video.

So just go to PIN meeting Skoda, UK, pick your location, scroll down where it says payment options. Click on pay with the voucher code for any of the details. Use the word YouTube and it will bypass the payment page

And you can come to your very first PIN meeting for free if you haven’t been yet or highly recommend you come along and see exactly what you’ve been missing out on. You’re going to wish you would have gone years ago. It’s going to help you move forward massively with your property investing.

So if you enjoy these videos, I highly recommend you go and check out the PIN meeting. Click on the link below in the description Invest with Knowledge, Invest with skill and enjoy the next video.