logo
London icon
icon London icon
Steady Growth Predicted for the Future of the UK Real Estate Market
Apr 3, 2024
Steady Growth Predicted for the Future of the UK Real Estate Market London
By   Internet
  • City News
  • UK Property
  • UK Property Market
  • Housing Market Recovery
  • House Price Rise
Abstract: The UK real estate market in 2024 shows signs of recovery with rising house prices and increased sales volumes. According to data, house prices have been steadily rising, and sales volumes have increased compared to the same period last year. Economic factors, such as real wage growth and a healthy job market, are driving the market recovery. Looking ahead, the real estate market is expected to remain stable and further growth is anticipated.

According to Zoopla's House Price Index data, as of February 2024, the average house price in the UK was £263,900, up £200 from the previous month. Although the annual house price inflation rate remains negative, it has rebounded from previous lows, bringing a sense of warmth to the market. In fact, house price inflation is currently higher across all regions of the UK compared to six months ago, indicating a trend of market recovery.


The recovery of the real estate market is not only reflected in rising house prices but also in increased sales volumes. Statistics show that agreed sales volumes are up by 9% compared to a year ago, and sales for the first three months of 2024 increased by 7% compared to the same period last year. Particularly noteworthy is the significant sales growth in more affordable areas such as the Northwest, Yorkshire and the Humber, with sales growth reaching 13% and 11% respectively.


Steady Growth Predicted for the Future of the UK Real Estate Market

Internet


Behind this sales growth is the result of more sellers putting their properties on the market. Over the past four weeks, the average number of properties listed for sale on the market has increased by 11% compared to the same period last year, with overall listings increasing by one-fifth. Particularly noteworthy is the strong growth in new sellers of properties for sale in the Southwest and Northeast, with an 8% increase in London. This also explains why house price inflation rebounds faster than in other areas.


The recovery of the real estate market is not only influenced by market supply and demand dynamics but also by economic factors. Accelerated real wage growth and a healthy job market have boosted consumer confidence. The latest GfK Consumer Confidence Survey shows that confidence in personal finances has reached its highest level in over two years. Additionally, the average mortgage rate for a 5-year fixed-rate loan with a loan-to-value ratio of 75% has dropped to 4.4%, which also helps stimulate housing demand.


Looking ahead, it is expected that the UK real estate market will continue to remain stable and is poised for further growth. With economists predicting the base rate to further decrease to 3.5% by the end of 2025, mortgage rates are expected to remain above 4%. This means that the purchasing power of buyers will continue to increase, further supporting the upward momentum of house prices.

icon
+87
icon
 
icon icon
icon
banner
Steady Growth Predicted for the Future of the UK Real Estate Market
icon
icon
icon
icon