How are house prices holding up in your area?

Following reports predicting a fall in house prices in 2024 how is it actually looking now?

UK house prices are on track to beat forecasts of a decline in 2024, according to leading estate agent Knight Frank. This turn around is mainly due to a mortgage pricing war and expectations that the Bank of England will cut interest rates which will rekindle the property market.

At the start of the year Knight Frank estimated that UK house prices would drop by 4%. However, after a year of sustained price falls in 2023, the global property consultancy said it was updating its forecast for UK house prices to rise by 3% in 2024.

Equally The Times ‘Money Mentor’ have noted that the latest official figures show house prices are still down year-on-year, but signs of a recent resurgence mean that might not last long.

Looking at what’s being listed for sale now, Rightmove found that the average price of newly marketed properties rose by 1.5% in March. Rightmove’s Tim Bannister commented: “March is typically a strong month for asking price growth, as both buyer and seller activity levels rise and the spring selling season gets underway. However, the stronger than usual price growth this March indicates that new sellers are feeling much more confident, with some perhaps being over-optimistic, that there is enough buyer activity and affordability in their local market to achieve a higher price.”

What the ONS is saying

The Office for National Statistics (ONS) has just published data on 20^th March 2024 for all local authorities across Great Britain detailing how house prices have fared in their area. The data revealed that:

Average UK house prices decreased by 0.6% in the 12 months to January 2024 (provisional estimate), up from a decrease of 2.2% (revised estimate) in the 12 months to December 2023.

And what does the ONS say about Rental Prices?   

Whilst house prices have not dropped as much as initially feared – rental prices have continued to rise quite sharply with the ONS stating:

Average UK private rents have increased by 9.0% in the 12 months to February 2024 (provisional estimate), higher than in the 12 months to January 2024.

In the UK, London saw the sharpest increase in rental prices at 10.6% compared to the lowest at 5.7% in the North East.

What are we seeing at Chiltern Relocation?

Chiltern Relocation is pleased that the negative forecasts for 2024 appear to be reversing and that there is strength returning to the property market.

We are seeing renewed interest in the sales market now that the initial negative reports of a housing crash have not materialised and in fact some areas even registered an increase in house prices such as Buckinghamshire with an increase of 1.2%.

Chiltern Relocation is also seeing continued interest in the rental market in addition to rising rental prices. This is due to a number of factors including:

• Fewer houses on the sales market due to concern over the current housing market meaning more people are needing to rent in the short term
• Interest rate uncertainty
• Cost of living crisis still being felt
• Fewer rental properties available due to new landlord restrictions meaning many landlords are choosing to sell their rental properties

Should you be thinking about moving now or should you wait?

Our clients have taken the view that they wish to proceed in the current market and their move is for long term gain. Whilst stock levels are low, Chiltern Relocation is finding that there are still opportunities to find the right property. We are also seeing a renewed interest in clients keen to take on a project.

In previous years, private clients would have been squeezed out by corporate developers, but with interest rates making the profit margin much tighter for the big builders it is leaving an opening for private individuals to take on the potential of building their dream home.  Exciting times indeed.