With hopes high for a reduction in interest rates on the horizon, we are moving towards spring with strong potential to see recovery in 2024’s housing market.

Biggest Increase for A Year in House Prices

The average house price has risen significantly throughout the UK according to both Halifax and Nationwide as we move into spring 2024. Average properties are now worth approximately £257,656, representing a rise of 0.7% according to Nationwide, while Halifax, the largest provider of mortgages in the UK, reports that an average home now has an asking price that is 2.5% higher than that from January 2023. This price hike is the biggest experienced since 2020, over double the 0.6% 20-year average.

More Buyer Enquiries Show Increased Market Activity

Prospective homebuyers are now starting to look at taking another step up the property ladder, with January looking set to be Rightmove’s Agreement in Principle service’s busiest month since its initial inception in 2022. The increase in demand is being met by equal enthusiasm from sellers, with 15% more new properties coming onto the market when compared with this time last year.

New agreed sales are up by 13%, showing that sellers and buyers are becoming increasingly aligned on pricing. Yet as a fifth of sellers are still accepting over 10% below their asking price to secure their sale, it remains clear that attractive pricing is still crucial.

Mortgage Rates Falling but Base Rate Is Holding

The Bank of England’s Monetary Policy Committee held a meeting on 8th February at which a majority decision was made to keep the base rate steady at 5.25%. This is the highest base rate seen since 2008’s Financial Crisis, yet instead of building societies and banks retaining higher interest rates on their mortgages, we are starting to see prices falling in the mortgage market, indicating that lenders are viewing the choice to hold rather increase the base rate as a positive sign from the Bank of England.

Growth In the Rental Market

Growth in the UK's rental market remains at a historic high. 

Currently, the average amount of rent tenants are paying in the UK each month comes in at £1,200, with renters in London paying the highest typical rent at approximately £2,119 and those in the North East paying the lowest amounts at just £695.

Landlords appear to be taking a more realistic approach to rental pricing, perhaps taking the cost-of-living crisis into consideration as they set new rates, which is good news for those who are still unable or unwilling to purchase their own property.

Heading In the Right Direction for Spring?

With the start of 2024 seeing signs of success in the property market, we are heading in the right direction for a positive Spring. Tenants and homebuyers alike are likely to see improvements as we move forward, making this an excellent time to start looking for a new home.

As March is traditionally the month during which properties are most likely to secure a buyer, now is the perfect time for anyone considering selling to make the move.

If you are thinking of buying or selling a property, get in touch with our friendly team, we are here to get you moving and guide you every step of the way. 

Click here to book your FREE valuation.