A Cardiff estate agents has shared its outlook for lettings and sales for the next year.
Thomas H Wood, which has offices in Whitchurch and Radyr, has been helping customers buy, sell and rent homes across south Wales for over 50 years.
The experienced lettings team has noticed a trend of upward rents over the last few years which is set to continue in 2024.
John Wood, director of Thomas H Wood, said: “Since the end of lockdown, we have seen a surge in property rents in the private rented sector and the rent increases are set to continue this year. We are seeing forecasts that expect prices to rise by 5% over the next 12 months.
“We expect rent prices to continue to increase over the next year at a steadier pace than they have previously. However, this will depend on any further policies introduced by the Welsh Government and when these are implemented. If the rent control measures proposed in last year’s green paper consultation become a reality, this could lead to a rent surge as landlords sell and therefore reduce the stock available on the market.”
With regards to sales, the team is relieved to see market conditions returning to pre-covid levels, following the abnormality and volatility of the market immediately after covid.
Paul Wood, director of Thomas H Wood, said: “October and November showed positive signs within the marketplace with sales and new instructions performing better than expected. However, sellers need to remember that it is currently a buyer’s market so properties will take a longer time to sell and will likely sell below the asking price.
“Interest rates decisions will be watched closely by buyers concerned about mortgage rates. The stabilisation of the base rate is having a positive effect on the market at the moment. With inflation yet to meet its 2% target, we anticipate that the static base rate could continue for some time in 2024.
“Any reduction in the base rate is likely to fire up the £450,000 to £650,000 market which has been a little slow over recent months as owners have been hesitant to sell and potentially take on a bigger mortgage.”