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:
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 research from Halifax has revealed the most sought-after locations for first time buyers in Britain.
The data which was taken from the Halifax House Price Index looked at areas outside of London where those looking to purchase their first property were buying. Despite high property prices and increased rates, these first time buyer hotspots have remained popular.
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