According to Nationwide, house prices saw a 0.7% increase in January, bringing annual growth to -0.2%. Despite borrowing costs remaining higher than in early 2022, prices have largely plateaued over the past year.
The surge in demand has been a key factor in supporting house prices. The January RICS survey revealed an increase in both supply and demand for the first time since March 2021, creating a balanced market where prices are stable.
Consumer confidence has also seen a notable improvement, reaching a two-year high in January. This positive sentiment, coupled with diminishing recession fears and decreasing inflation, has contributed to the rise in demand.
The number of agreed sales in January soared by 23% compared to the same period last year, as reported by TwentyCI. However, this increase in demand has yet to translate into concrete activity, with completed transactions in December 2023 still below the 2017-19 average.
While falling mortgage interest rates have stimulated demand, lenders are exercising caution regarding further rate cuts until there is more clarity on the trajectory of interest rates. Regional variations in house price growth are evident, with southern areas experiencing more significant declines compared to the North and Midlands.
As we navigate through the early months of 2024, the Henshaw Fox team encourages both buyers and sellers to stay informed and make the most of the current favourable conditions in the UK housing market.
If you’re considering a move in 2024, Get in touch.
Call our dedicated team at Henshaw Fox and schedule your free home appraisal today.
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