04/03/2024
House prices begin to fall at a slower rate with the market showing signs of recovery
House price declines are gradually easing as sales volumes increase across the UK. In October 2023, prices dropped by -1.4%, slowing to -0.8% by December.
The East of England (-2.5%) and the South West of England (-2.2%) experienced the most significant declines in 2023. In contrast, house prices in Northern Ireland increased by 3.2%. Despite this, higher mortgage rates are expected to persist, influencing house prices throughout 2024.
Data indicates that sellers are consistently reducing asking prices to attract buyer attention. More than 20% of sellers are now agreeing to discounts exceeding 10% of the initial asking price, with this figure rising to 25% in London and the South East of England.
Prices have stalled for various reasons, including:
- elevated mortgage rates disproportionately affected pricier housing markets
- tax alterations restricted property acquisition by investors and international buyers
- the Brexit vote impacted job growth
- the pandemic closed cities which altered work patterns.
It is unlikely that mortgage rates will fall significantly in the near future, however the rising borrowing costs appear to have steadied with rates remaining within the 4% to 5% range. This has had a positive impact on the market, with Nationwide’s January index reporting that the average house price had increased by 0.7% during the month, a significant turnaround from the December figures.
For more information on house prices, please call 023 8046 1254, or email Tom Young.
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