This one factor is reshaping the UK house prices...

Market-update

Quick Bites

  • UK house sales are projected to maintain a steady 1m in 2024.
  • Housing price inflation slowed dramatically from 9.6% to -1.1% over the past year.
  • 4 out of 5 local housing markets observed a decrease in annual prices.
  • Transactions are expected to see a 23% drop in 2023 compared to 2022.
  • First-time and cash buyers are taking the lead, representing 2 out of 3 sales in 2023.
  • Predictions suggest a 2% dip in UK house prices for 2024, but increasing incomes might help improve housing affordability.

Deep Dive

  • The housing market, which previously saw significant growth, is now facing challenges in 2023. With 4 out of 5 markets experiencing price falls and transactions witnessing a significant dip, the year appears to be challenging.
  • On the bright side, despite the market's current state, first-time and cash buyers are showing confidence, making up a large portion of sales this year.
  • Mortgage Issues: As the economy witnesses slow growth, increased mortgage rates and living costs are impacting buyer demands. This has resulted in a swift deceleration in price growth, moving from +9.2% to -1.1%.
  • Regional Insights: Southern England, which previously led in price hikes, is now experiencing reductions. Cities like Colchester, Canterbury, and Luton are seeing notable annual price drops.
  • Looking Forward: With UK house prices expected to drop by 2% in 2024, the housing market remains on the expensive side, especially with 5% mortgage rates. However, if mortgage rates can return to a more approachable 4%, sales might surpass the predicted 1m in 2024.

Avocado Advice

For those considering entering the housing market, monitoring mortgage rates and regional trends will be crucial. While the current state of the market might appear unstable, patience and timely decisions can lead to favorable outcomes.

So if you're ready to plan your move or would just like to find out how much your property is worth, book a valuation with your local Avocado partner here.

Or if you're in a rush, use our FREE instant house price calculator here.

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