12 Jan 2024
The 2023 House Price Drop
In this blog, we look at what happened in the housing market with house prices last year and look ahead at the forecast for 2024.
It is fair to say that 2023 didn’t see a property price crash, but prices did drop as the cost-of-living crisis and increased mortgage rates impacted on buyer’s budgets, while those wanting to sell up dropped their prices to attract interest.
The Office for National Statistics (ONS) shows the average house price dropped by 1.2% in the 12 months from October 2022 to October 2023. Whilst data from property search site, Rightmove confirms that the average asking prices fell by 1.9% between November and December, which was a sharper drop than normal as sellers attempted to entice buyers to view their homes during the festive period. Another property search site, Zoopla stated that house prices have fallen across 80% of the UK as the cost-of-living crisis affected demand and budgets as higher mortgage rates impacted their affordability and buying power.
With the property market facing a rather big challenge, we ask what is in store for 2024 the truth is, no one can be certain what will happen but it looks likely that the prices will continue to drop:
- Nationwide expects that due to mortgage rates house prices may go down 0-2% throughout 2024
- HomeOwners Alliance expects house prices to fall a further 1% in 2024
- Zoopla predicts a 2% price drop in the UK
- Rightmove believes the seller’s asking prices will be 1% lower nationally by the end of 2024
- Lloyds Banking Group predicts that the prices will drop by a further 2.4% in 2024
Though there is some uncertainty around what will happen this year, most experts do not expect a housing market crash to take place. With inflation falling faster than anticipated, we are hopeful that the Bank of England could start cutting the base rate this year meaning better affordability for those looking to buy.
Recent posts
The government has announced plans to make buying or selling a home cheaper and quicker with what is being called the “biggest shake-up to the homebuying system in this country’s history.”
More borrowers using equity release
20 days ago
Almost one in five equity release mortgages are now taken out to provide financial support to family.
Buyers purchasing properties sooner
22 days ago
According to industry data, the expected wait for those looking to buy a property has dropped from just over 11 months to less than six months.
It is common for your first mortgage payment to be higher than your subsequent monthly payments for two reasons.
What to do just before you get your keys
27 days ago
Firstly, a big congratulations, you’ve now exchanged contracts! After weeks and months of waiting, you are about to move in. What should you do first?
The chancellor will deliver her second budget this autumn. Due to slow economic growth and high inflation, the government need to manage a £40 billion shortfall in public finances. There have already been reports about changes to taxes including income tax and capital gains tax.
Landlords could face a new tax this autumn
29 Aug 2025
The chancellor has advised that landlords could have another tax to pay this autumn as the Treasury decide whether to extend national insurance contributions to rental income.
According to a report in the Guardian, senior ministers have asked Treasury officials to look into a “proportional” property tax to see how it would work as an alternative to the existing stamp duty land tax on owner-occupied homes.
More information
Trusted by
