Homebuyers are increasingly targeting smaller properties, particularly flats, in their desire to get on the property ladder while coping with higher borrowing costs,
“This reflects a housing market finding its feet in an era of higher interest rates. While borrowing costs remain more expensive than a few years ago, homebuyers are gaining confidence from a period of relative stability., evidenced by greater numbers of mortgage applications so far this year, while at an industry level mortgage approvals have reached their highest point in 18 months.
“If, as is still expected, downward moves in bank rate come into play later this year, fixed mortgage rates should fall.“Combined with the resilience displayed by the housing market over recent months, we now expect property prices to rise modestly over the course of 2024.”