UK Property Market Anticipates 1% Price Drop in 2024 Amidst Seller Competition and Mortgage Rate Stability

The UK housing market is poised for a one per cent decline in average house prices in 2024, according to predictions by Rightmove.

Additionally, the forecast attributes this dip to heightened competition among sellers, necessitating more competitive pricing to attract buyers. Anticipating a landscape where sellers will need to adopt more competitive pricing strategies to secure buyers in 2024, Rightmove also foresees a stabilisation in mortgage rates, albeit at persistently high levels.

A year ago, Rightmove had predicted a two per cent drop in average asking prices for 2023. However, as of Monday, the company revealed that the average asking price was 1.3 per cent lower than in 2022. This decline persists due to the property market grappling with substantially elevated mortgage costs and an enduring cost of living crisis.

It’s crucial to note that Rightmove records asking prices, not the final sale prices of properties. The platform predicts that these asking prices are likely to be approximately one per cent lower nationally by the close of 2024. This adjustment marks the market’s gradual transition to what Rightmove terms as “more normal levels” of activity following the bustling post-pandemic period.

During 2023, the proportion of sellers reducing their asking prices surged to 39 per cent, a noticeable increase compared to 29 per cent the previous year and 34 per cent in 2019.

Tim Bannister, a property expert at Rightmove, commented on this, stating: “An average drop of 1 per cent in prices aligns with our forecast for another subdued and, in certain aspects, challenging year for buyers and sellers in 2024.”

Bannister underlined the unexpected buoyancy in activity this year, highlighting that many buyers are actively pursuing their housing requirements, presenting a significant opportunity for sellers and agents who employ appropriate pricing strategies.

Nationwide Building Society reported a 0.2 per cent month-on-month increase in prices for November,

The original article can be found here

Scroll to Top