The property market didn't crash - as some expected - in 2023, but how will it fare in 2024 as inflation slows and mortgage rates drop? The housing market has had a confident start to the year but most analysts still expect the market to drop in 2024.
House prices had continued to grow since Covid restrictions ended, with unemployment remaining low and demand for properties outweighing supply. But 2023 marked a change. Experts generally expect house prices to keep falling in 2024.
"If the economy remains sluggish and mortgage rates moderate only gradually, as we expect, house prices are likely to record another small decline or remain broadly flat over the course of 2024," said Robert Gardner, Nationwide's chief economist.
Commenting on the figures, Robert Gardner, Nationwide's Chief Economist, said: “UK house prices ended 2023 down 1.8% compared with December 2022, leaving them almost 4.5% below the all-time high recorded in late summer 2022.
What will happen to UK house prices in the next 5 years?
Over the next five years, UK house prices are on track to rise by 17.9 per cent, or £45,521, Savills suggests. By 2028, the average UK property price is expected to reach £300,108, according to its data. By this point, mortgage rates are likely to be around the 3 per cent mark.
Where will house prices fall the most in 2024? | The Business | ABC News
Should I sell my house now or wait until 2024 UK?
Despite the property market beginning to show signs of recovery it still may be worth holding off before selling your house. Sales are expected to fall by 4pc this year, according to estate agency Savills, before rebounding in 2024 and remaining broadly flat until 2027.
Rightmove predicts new seller asking prices will drop nationally by an average of 1% in 2024 with motivated sellers still needing to price below their local competition to secure a sale. Zoopla's UK house price forecast is that prices will drop by 2% over 2024.
Yes. If you want to sell your house now, with house prices dipping after many years of house price increases, it might be a good time to capitalise on house price growth in case it wanes any further, especially if you're selling a Buy to Let property or second home.
The Office for Budget Responsibility predicts prices to fall by 9% between the end of 2022 and 2024, providing confidence for buyers looking to invest in 2023. This time of year is especially beneficial for those looking to snag a cheap property due to the limited demand for houses during the winter months.
In 2025, Lloyds expect house prices to rise by 2.3%, while fellow lender Santander has predicted a rise of just 2%. While small, these rises indicate welcome early signs of recovery for the beleaguered housing market.
But if you are hoping for a crash to make a home more affordable, you may be disappointed. Earlier this month the UK's largest lenders, Nationwide and Halifax, predicted price falls in 2024, but Nationwide only a “low single-digit decline” and Halifax a drop between 2% and 4%.
Analysts at Capital Economics predict house prices will fall by 5-6% by mid-2024, because "we think that mortgage rates will stay around their current high level until next summer". Lloyds Banking Group thinks prices will continue to slide, and will not start to recover until 2025.
UK house prices will fall by up to 4% next year as high interest rates continue to affect mortgage affordability and sales completions, according to Halifax.
The UK economy towards the end of 2023 is struggling, with the cost of living and high mortgage rates causing the housing market to slow down and house prices to start falling. It's been predicted by Zoopla that house prices are expected to fall by 2% in 2024, with mortgage rates also expected to fall.
And, with the recent good news of lowered fixed-rate mortgages showing a more positive outlook for 2024, it could be an ideal time to re-evaluate your living situation. Here are 7 tell-tale signs that it's time to consider a move: Outgrowing Your Current Space.
Mortgage rates reached 20-year highs, and many economic experts still believe we are heading for a recession in 2024. A high-interest-rate climate gives you less buying power, so buyers who opt to wait for lower rates may find themselves able to afford a higher-priced house, due to the lower mortgage payments.
Estate agent Savills predicts that UK property prices will fall by 3% in 2024, before recovering in 2025 and rising by 3.5% Lloyds Bank has forecast a further 2.4% decrease in house prices over 2024. It expects prices to then recover slightly in 2025.
If you're looking for the best deals, you might want to wait until late fall or early winter. That's the time when buyers typically pay the lowest premiums above market value. However, if you're after lots of inventory, focus on late spring and early summer in any year.
What is the long term outlook for house prices in the UK?
Across the UK, Savills predicted house prices will fall by another 3 per cent before rising by 20 per cent between 2025 and 2028. With total growth over the five-year period estimated to be 17.9 per cent, the average UK home would be worth £300,108 – £45,521 more than their 2023 value.
The slowest months for real estate can vary depending on the location and market conditions, but generally, the winter months, particularly January and February, tend to be slower in many areas.
Under the new Rightmove relisting rules, to get a completely new listing, you need to be completely offline with any estate agent (as your address is linked) for sales: 14 weeks (3.5 months) and lettings 14 days (2 weeks).
There are many different schools of thought on when to reduce your house price, or how long on the market before price reduction is needed, but for us, if you haven't had any decent viewings in 4-6 weeks, it's time to reduce.
'If the economy remains sluggish and mortgage rates moderate only gradually, as we expect, house prices are likely to record another small decline (low single digits) or remain broadly flat over the course of 2024. '
Over the five-year period, house prices for mainstream properties are forecast to fall by 1.7 percent. In 2022, the average house price in London ranged between 340,000 British pounds and 1.4 million British pounds, depending to the borough.
It was estimated that house prices would drop by 5% in 2023, and are expected to drop further in 2024. At the moment, the most recent data shows that house price growth is slowing down - in October 2023, house prices were -1.1% lower than a year ago, with the average UK house now costing £291,000.
