NEWS: Research Reveals Insights into UK Mortgage and Property Market in 2024

Our recent survey results provide insight into public perceptions regarding interest rates, mortgage repayments, house prices, and the housing crisis debate in the UK in 2024. 

About Clifton Private Finance: Clifton Private Finance specialises in mortgage brokering and property finance, offering expert advice and solutions in the UK property finance market. 

Methodology: The research was conducted through over 250 form fills on the Clifton Private Finance website, which attracts thousands of monthly visitors seeking information on property and property finance. This method ensured a diverse and relevant audience for the study. 

Interest Rates

• Just 15% of participants believe interest rates will rise over the next 12 months, while 85% expect either a decrease or for rates to stay the same. 

This sheds some light on the fixed or tracker mortgage debate for first-time buyers and those remortgaging in the next coming months. 

George Abouzolof

Senior Finance Broker CeMAP

The Bank of England base rate has dropped to 5%, which will have had an immediate impact for those on a tracker mortgage.

Since the base rate has decreased, inflation has ticked upwards slightly by 0.2% in response to the increased purchasing activity. While this might seem insignificant, it will affect larger purchases, and the Bank of England will be watching inflation closely over the next few months to ensure that it doesn’t rise excessively.

However, despite inflation rising, rates have still dropped across the board and many households will be saving on their mortgages. Lower rates open the playing field for first time buyers and investors waiting for a signal to make a purchase.

Mortgage Repayments

• Concern about meeting mortgage repayments in the next year is notable, with 33% of people worried about keeping up:

• And this increases to 40% for those earning under £50,000 per year. 

Income under £50,000 per year: 

George Abouzolof

Senior Finance Broker CeMAP

People are definitely worried – we see a clear concern about repayments among our clients every day.

As brokers, we look at every possible avenue to alleviate these struggles, whether it’s increasing the mortgage term, switching some or all of your mortgage to interest only, exploring offset mortgage options, and of course comparing lenders to get the most competitive deal.  

House Prices

• It’s a pessimistic outlook for property prices in the UK, with 37% of participants predicting a decrease in house prices over the next 12 months, and only 26% thinking they’ll increase. 

Housing Crisis: 

• A significant 59% of participants believe the UK is currently facing a housing crisis. 

• This is more pronounced among those earning under £50k per year, with 69% affirming the crisis compared to just 46% of higher earners. It signifies a very divided outlook on housing options in the UK based on annual earnings. 

Income under £50,000 per year: 

For more information, please contact: sam.hodgson@cliftonf.co.uk