Knight Frank’s latest forecast suggests the UK property market will align with recent predictions for late 2024. The Bank of England’s earlier-than-expected rate cut to 5% hasn’t altered their forecasts, but the new Labour government and the rate cut may shift market conditions. Knight Frank will update their forecasts after the October 30 Budget announcement, which could impact property investment outlooks.
Knight Frank reports that the rate cut has positively impacted the mainstream market, with minimal effect from the general election. They expect stronger demand and sales in the latter part of 2024 compared to 2023, when high inflation and borrowing costs reduced transactions by 19% below the five-year average (excluding 2020). For 2024, Knight Frank forecasts a 3% price growth for the UK and 2% for Greater London. July’s data shows a 2% increase in the UK market, aligning with or exceeding predictions, while Greater London’s 1.6% increase is nearing the 2% forecast.
Knight Frank maintains their rental growth forecast but will reassess it after the Budget and Labour’s rental plans are clarified. July saw an 8.6% increase in rents, but this is expected to moderate, with a projected 6% growth by year-end. Greater London is forecasted for a 5.5% rental growth in 2024.
