Changing Face of Property Investment Hotspots in 2024

A property search company - Recoco - has given a radical reassessment of some investment hotspots in its preview of 2024.

Nigel Bishop, founder of the agency, says: “On a national picture, 2024’s property market is unlikely to see any dramatic change in property prices as the level of buyer and seller activity will be a mirror image of 2023. This, of course, varies on a regional level. With regards to the national housing market however, it is far more likely to see an uplift in property transactions in 2025 after the General Election has taken place and people feel generally more settled and comfortable to make major financial decisions.”

South Devon - Recoco expects a subdued market with limited stock levels to create more competitive market; an increase in demand from cash buyers and those seeking a permanent lifestyle change; the second home market to slow down further; the buyer demographic largely insulated from UK’s mainstream market so less affected by interest rates and cost of living; prices to fall slightly until mid-2024 as sellers are adjusting their asking prices; and prices to stagnate towards the end of the year before rising again as we enter 2025

Rupert Stephenson, buying agent at Recoco Property Search, comments: “As we enter the new year, Devon’s property market will be seeing less demand from second home buyers and, instead, attract house hunters who are seeking a permanent lifestyle change. This shift in buyer demographics is driven by a general decrease in demand for holiday homes post-pandemic but also caused by higher mortgage rates which means fewer home owners are in a position to take out a cheap re-mortgage to buy a second home.”

Cornwall - Recoco expects relocation buyers to remain steady during 2024. Typically, during times of economic and social unrest the south west and Cornwall in particular is viewed as a safe haven; fewer enquiries for second home buyers in 2023 which will continue into 2024 particularly in the sub million bracket and particularly for holiday home investors as the market has been over saturated from the aftermath of the pandemic, mortgage rates and government restrictions on landlords; and the average age of buyers in the £1m market to decrease, meaning Cornwall could be seeing increasingly younger demographic going forward

Anna Sharp, of Recoco’s Cornwall office, says: “We may see a similar market to Q4 of this year in Cornwall during 2024, a steady influx of locals or relocators moving into the county. Cornwall is often viewed as a safe haven and therefore continues to attract buyers particularly during economic, social and political unrest. We will likely see a more traditional second home market whereby sales levels remain stable above the £1.5m threshold, particularly in prime coastal areas. I believe we will continue to see a high level of off-market sales in this price range. 

“The sub-million investment second home market may see a dip due to high buy-to-let mortgage rates as well as local and national government restrictions for landlords. Due to the ease of accessibility, better infrastructure and technology we are starting to see an increase in younger buyers in the £1m+. Many are looking to move to the country to find the “good life” as well as the work-life balance lifestyle Cornwall has to offer.”

South East - Jeremy Campbell-Harris, another Recoco property finder, claims: “The £1m-plus market in the south east is still very strong for both second home owners and those wishing to commute into London whilst the prime London markets continue to see steady demand from domestic and international buyers. House hunters still have to pay a premium for off-market opportunities to avoid competition whilst I foresee for the wider market to remain at current price levels for the time being.”

Somerset and Dorset - Robin Thomas, another Recoco buying agent explains: “There is still much pent up demand from buyers of country and village properties who could not find the property that they were seeking in the frenetic post-pandemic years of 2021 and 2022. There has been a shortage of quality properties being offered for sale and I predict this shortage to continue in 2024 as potential sellers sit on their hands and gradually realise that they will not be able to achieve the price they had initially hoped for as house prices in the South West will most likely fall back another five to seven per cent by May 2024. 

“At the same time, the volume of properties that are being offered off-market is increasing and likely to make up about 40 per cent of properties for sale in the South West counties over £1.5m in 2024. Next year’s market will be driven by cash buyers as sellers of more expensive properties in London and the South East seek to move to the West Country with cash in their pockets.”

Eastern Counties: Norfolk, Suffolk, Cambridgeshire and Bedfordshire - Recoco’s Camilla King  finds: “We have seen more properties being sold off-market this year, which is a trend among sellers that will only intensify in 2024. A key reason for this is that sellers want to avoid their property being publicised and on the market for too long as it can deter buyers and impact on the asking price as a result. 

“Whilst Norfolk has seen an increase in buyers during the pandemic, we are now seeing a slight shift whereby former city dwellers need to return to the London office more regularly and therefore decide to sell up. This is good news for house hunters as the market will see an uplift in the number of available properties which could position them in the driver’s seat during price negotiations. Others (sellers) decide to let their home out instead in order to have a passive income whilst finding a new, permanent home nearer the city for themselves.”