As we bid farewell to 2023, it’s time to reflect on the dynamic landscape of Leicester’s property market over the past year. Join us on a journey through the key trends and developments that have shaped the real estate scene in our vibrant city.
Resilience in the Face of Change
Despite external challenges, Leicester’s property market exhibited remarkable resilience throughout 2023. The city’s real estate demonstrated adaptability and strength, contributing to a market that remained robust even in the face of uncertainties.
The Rise of Sustainable Living
One prominent trend that emerged in 2023 was the increasing demand for sustainable living spaces. Leicester residents showcased a growing preference for eco-friendly features and energy-efficient homes, reflecting a broader societal shift towards environmentally conscious living.
Architects and developers responded to this growing demand with creativity, integrating innovative green technologies, energy-efficient appliances, and environmentally conscious building materials into the fabric of Leicester’s real estate landscape. The outcome was a blending of contemporary comfort and environmental responsibility, with homes seamlessly merging into the surrounding ecosystem, fostering a harmonious coexistence.
This shift towards sustainable living goes beyond a passing fad; it stands as a testament to the city’s forward-thinking ethos. Leicester’s residents are trailblazers in adopting a lifestyle that not only enriches their immediate living environment but also contributes to the broader global discourse on responsible living. As we contemplate this transformative trend, it becomes evident that Leicester’s property market is not merely reacting to present needs; it is actively shaping the future of how we inhabit our spaces, underscoring the significance of sustainability in the homes we opt to construct and cherish.
Tech Integration and Smart Homes
The year 2023 witnessed a remarkable surge in the infusion of technology into the very fabric of homes. As the digital age continued to evolve, smart home features emerged at the forefront of modern living, transcending from mere conveniences to essential components of contemporary residences. From sophisticated security systems providing peace of mind to advanced energy management solutions ensuring efficiency, these smart features have rapidly gained popularity among discerning buyers, redefining the concept of a connected and intelligent home.
The integration of technology went beyond mere gadgets; it became a narrative of creating homes that anticipate and respond to the needs of their occupants. Leicester’s property market, known for its resilience and forward-thinking approach, became a playground for innovative solutions. Homes were now equipped with intelligent systems that could be controlled remotely, providing homeowners with unprecedented control over their living spaces.
From smart thermostats that learned and adapted to individual preferences to lighting systems that adjusted based on natural sunlight patterns, Leicester’s homes became showcases of technological sophistication. The real estate landscape transformed into a harmonious blend of traditional comfort and cutting-edge innovation, where the integration of technology was not just a feature but an integral part of the lifestyle that Leicester residents sought.
Affordability and Inclusivity
The emphasis on affordability and inclusivity continued to be a driving force in Leicester’s property market. Developers and agents worked collaboratively to provide a range of housing options, ensuring that the property market remained accessible to a diverse demographic.
Recognising the shortage of affordable housing, particularly 2-3 bedroom family houses, Leicester City Council have put forward a strategy that includes buying back former council-owned homes to enable their use as council housing again and negotiating with developers to ensure affordable housing is of the type and size needed, including wheelchair-accessible homes.
Remote Work Influences Property Choices
With the rise of remote work, the concept of home as a multifunctional space gained prominence. Leicester residents sought properties that accommodated home offices and flexible living arrangements, reflecting a shift in priorities and lifestyle choices.
Predictions for the Leicester Property Market in 2024
As we stand on the cusp of a new year, the ever-evolving landscape of real estate in our city leaves both buyers and sellers eager to unveil what the future holds. There’s no real way to predict the future, but experts and market analysts offer valuable insights into potential trends and dynamics that may influence Leicester’s housing market in 2024. Let’s explore some of these suggestions to get a glimpse into the possibilities that may influence the real estate landscape in the coming year.
Will house prices in Leicester go up or down in 2024?
Numerous research institutions are projecting declines in house prices for 2024. However, as observed in recent months, the market is displaying increasing fragmentation and diverging significantly based on location, price range, and buyer demographics. Consequently, the likelihood- of witnessing a uniform pattern of price falls akin to those experienced this year appears less probable.
Halifax and Nationwide, the UK’s largest mortgage lenders, have both projected house prices to fall next year, with Halifax forecasting that house prices are expected to decline by 2 to 4 per cent next year and Nationwide stating that prices would likely experience a “low single-digit decline or remain broadly flat.”
Robert Gardner, Nationwide’s chief economist, expressed, “Even though house prices are modestly lower and incomes have been rising strongly, at least in cash terms, this hasn’t been enough to offset the impact of higher mortgage rates. As a result, housing affordability is still stretched.”
What is the forecast for home sales in 2024?
On a regional basis, sales transaction volumes have fallen this year by 11.8% across the East Midlands, reflecting a slowdown in the number of properties being bought or sold. To put this into perspective, it’s noteworthy that the East Midlands has one of the highest decreases across the country, second only to London, where the decline is even more pronounced at 15.9%. This comparative insight underscores the extent of the market dynamics at play, highlighting regional variations that contribute to the broader national narrative of real estate activity.
Global property expert CBRE has predicted that “On balance, home sales won’t rebound significantly, but the improved backdrop will underpin demand. Transaction volumes will still be below the long-term average in 2024 but remain broadly level to 2023. Buyers’ budgets will recover to an extent, albeit this won’t support house prices at their current level, with a further 1% fall forecast in 2024.”
How will mortgage affordability change in 2024?
The positive trend of robust wage growth and the decline in interest rates is poised to enhance mortgage affordability throughout the year 2024. This promising development bodes well for individuals navigating the property market, providing increased financial flexibility for prospective homebuyers and those considering remortgaging.
Furthermore, the intensifying competition within the mortgage market adds an extra layer of advantage. As the sector becomes more competitive, consumers can anticipate a range of benefits, including potentially more favourable terms, diverse mortgage options, and improved overall terms. This increased competitiveness is likely to empower homebuyers and individuals exploring remortgaging opportunities, offering a broader spectrum of choices and potentially more cost-effective solutions in the dynamic landscape of the mortgage market.
Open House, Experts in the Leicester property market
The upcoming year appears to be shaping up as another ‘interesting year’ for the Leicester property market, characterised by various twists and turns. In a polarised market, acquiring tailored advice will be essential for making well-informed and confident purchasing decisions in 2024.
At Open House, we are established experts in the Leicester market. Whether you are thinking of selling your house, moving up the property ladder or taking the leap and buying your first home, we can give you professional advice to help you navigate the dynamic real estate landscape.
Trust Open House to be your partner in achieving your real estate aspirations, backed by our commitment to excellence and a wealth of knowledge in the Leicester property market.
Explore our services for home sellers and buyers and get in contact with our team to kickstart your 2024 in the right way.
