House prices holding up in 2024

Despite predictions of a steep fall in house prices following 2022's controversial mini-Budget, the property market has remained stable. Prices have dropped slightly since their peak in 2022 but have held up better than anticipated. Official figures show that prices have fallen by about 3.3 % from their peak, although Nationwide calculates that the fall has been closer to 4%. Analysis shows that transaction volumes have been affected more than prices, as homeowners have chosen to wait for the market to pick up. First-time buyers have been most affected by rising mortgage rates, while high rental prices have contributed to the stability of house prices. House prices in areas which are mainly rural have increased at a faster rate than those in urban locations. Property values in rural areas are up 22% over the past five years, ahead of the 17% increase in urban areas. Many economists foresee prices rising across 2024. Pantheon Macroeconomics has estimated an increase of 4%, while Capital Economics is predicting growth of 3%. Robert Gardner, chief economist at Nationwide, expects prices to be “broadly flat” this year. 

Evening Standard (27/05/2024)   The Guardian (27/05/2024)   The Independent (27/05/2024)   The Times (27/05/2024)