Analysing Current UK House Prices

The Rise and Fall

During 2023 the number of sellers who cut their asking price, increased to 39% (previous year 29%). Just a few weeks ago, Nationwide Building Society announced that prices were up 0.2% month on month in November, but that on a year-to-year basis, prices were down 2% in November 2023.

In Scotland, the average sold price for a property over the last 12 months is £221,528. Scotland never matches the rest of the UK when it comes to market trends and indeed some property prices in specific regions soared by more than 20% during 2023. 

The Hot Spots

There are always regional variations when it comes to property, this is one of the reasons why it is important when you are investing that you speak with professionals  experienced in your local market.

Rural vs urban; Lifestyle choices and economic factors shape house prices. Coastal properties are normally in high demand, which can impact house prices in those regions.

Influences for 2024

1. Supply and demand for properties
2. Interest rates
3. Government policies
4. Job market stability

Market Trends

Rightmove have revealed statistics to suggest that house prices are currently 1.3% lower, year-on-year. Suggesting that sellers would need to price their properties more competitively to secure a sale. The level of sales right now is 10% lower than at this time in 2019. A further fall of 1% is predicted over the coming year.

Supply and Demand

Market dynamics are always affected between the supply of houses and the demand from purchasers. The demand for houses at the right price is expected to continue, suggesting it is unlikely that there would be a significant drop in overall prices.

Mortgage Rates

Mortgage rates are starting to fall, which is also increasing investors confidence.

There is always a direct correlation between current mortgage rates and current house prices, changes in interest rates impact the affordability of properties.

So this is good news for anyone looking to remortgage in 2024, it is predicted that some new fixed mortgage deals could dip below 4% by mid-2024.

Market Sentiment

Positive or negative perceptions can create ripples in the market, which can also impact on house prices.