As we step into the year 2024, several significant trends and developments are set to shape the real estate landscape. Black Norman, a solicitors firm based in Crosby, have written a list of all things prospective 2024 home owners should take into account when purchasing their next property for own use or rental.
Energy Efficiency
Energy efficiency has emerged as a concern for both homebuyers and investors. The impending changes in regulations, scheduled for 2025, will require new tenancies to meet a minimum EPC (Energy Performance Certificate) rating of C, a significant increase from the current E rating.
The average EPC rating for properties in England and Wales currently stands at D, signalling a need for improvement to meet the upcoming standards. Investors, in particular, are keen on finding properties with EPC ratings of C or higher to ensure compliance with the new regulations. This proactive approach is driven by a desire to avoid penalties and maintain attractive properties for prospective tenants.
Market Stability
While the housing market has faced its share of ups and downs in recent years, there is a general consensus that a major crash is unlikely to occur anytime soon. Economic indicators and expert opinions suggest a degree of resilience in the housing market, even as it navigates through changes and uncertainties.
Renters Reform Bill Concerns
One notable concern in the UK real estate sector is the impending renters reform bill. Landlords, in particular, have expressed pessimism about the potential implications of this legislation. The bill is expected to bring about significant changes in the relationship between landlords and tenants, including rent controls, increased tenant rights, and measures to prevent unfair evictions.
Remote Work’s Impact on Property Preferences
The remote work revolution that began in response to the COVID-19 pandemic has reshaped how people view their living spaces. As remote work becomes a permanent fixture in many industries, property preferences are evolving. In 2024, we can expect to see a continued emphasis on home office spaces, reliable high-speed internet access, and proximity to green spaces. Suburban and rural areas may see increased demand as people seek a better work-life balance, and property seekers may prioritise homes with flexible workspaces and a focus on well-being.
Co-Living and Shared Housing Models
Co-living and shared housing arrangements have become popular, especially among young professionals and urban dwellers. These models provide affordable housing solutions and foster a sense of community. In 2024, we anticipate continued growth in co-living arrangements as they offer an attractive alternative to traditional renting and homeownership. Real estate investors and property developers who embrace this trend may find opportunities for creating unique housing options that cater to the needs and preferences of this evolving demographic.
Cryptocurrency in Real Estate Transactions
Cryptocurrency is making its mark in the real estate sector. In 2024, we can expect an increasing number of property transactions involving cryptocurrencies like Bitcoin and Ethereum. This digital currency adoption offers benefits such as reduced transaction costs, increased security, and the potential for international buyers to invest in properties across borders. Real estate professionals and investors are adapting to this digital shift, and it is becoming a significant trend to watch.
Regional Property Markets
As major urban centres continue to face high property prices and congestion, smaller cities and regional property markets are gaining attention. In 2024, property seekers, particularly first-time buyers and investors, may explore opportunities outside of major metropolises. These areas often offer more affordable housing options, improved quality of life, and potential for property value growth as infrastructure and job opportunities expand. This shift may also foster increased interest in remote working and flexible lifestyles.
