Predictions and key factors investors should consider

Expert Predictions:

1. Interest Rates and Mortgage Costs: Higher interest rates are expected to impact the market, potentially slowing down house price growth. Mortgage rates are predicted to fall slightly but not as much as expected, affecting affordability.

2. Stamp Duty Changes: The recent Budget has increased stamp duty rates for second homes and buy-to-let properties from 3% to 5%, which could reduce demand in these segments.

3. Prime Property Market: The prime housing market, especially in high-demand areas like London, is expected to remain resilient despite economic challenges. However, changes in tax policies could affect high-net-worth individuals.

4. House Price Trends: House prices are likely to experience a correction rather than a crash, with a predicted decline of around 10% over the next few years

5. First-Time Buyers: The new Labour government's Freedom to Buy scheme aims to support first-time buyers, potentially boosting demand in this segment.

What Investors Should Look Out For:

1. Interest Rate Movements: Keep an eye on the Bank of England's base rate, as it directly affects mortgage rates and borrowing costs.

2. Stamp Duty Impacts: Be aware of changes in stamp duty regulations, especially if you're considering second homes or buy-to-let investments.

3. Prime Property Demand: Monitor demand in prime property markets, as they tend to be more resilient and could offer long-term investment opportunities.

4. House Price Trends: Track house price trends and forecasts to identify potential investment opportunities and avoid overpaying for properties

5. Government Policies: Stay informed about government policies and schemes aimed at supporting homebuyers and property investors, as these can create new opportunities or challenges.