UK housing market slowdown deepens, with 80% of areas seeing annual falls

UK house price falls to continue in 2024

The UK house price slump is deepening, with 80% of local areas now registering annual falls, according to Zoopla.

The property website says the slowdown is the most stark it has reported since 2009, in the aftermath of the financial crisis.

UK housing market slowdown deepens

Zoopla predicts that UK house price falls will remain in the low single digits for the next one to two years, with housing transactions staying flat at around one million in 2024.

However, this could improve if mortgage rates drop back towards 4% over the first half of 2024.

Higher mortgage rates hit house prices and transaction volumes

Higher mortgage rates have translated into weaker demand and reduced buying power, which in turn has resulted in prices falling.

Transaction volumes have also been hit hard, with a 23% reduction in housing sales so far this year compared to the same time last year.

Should you buy a house in 2024? Zoopla says buyers should ‘do their homework’

Zoopla says that there are parts of the population that remain keen to move, but they have been biding their time in 2023 and waiting for the outlook to become clearer.

The website advises buyers to do their homework and put themselves in the best position for the new year knowledge wise, financially wise and ability wise.

Cash buyers to remain an important buyer group in 2024

Cash buyers are expected to remain an important buyer group in 2024, as they are less affected by higher interest rates.

Nigel Bishop of buying agency Recoco Property Search says that the UK’s property market, particularly at the higher end, has seen a noticeable boost in cash buyers over the past year. He expects this trend to continue in 2024.

Conclusion

The UK housing market is facing a number of challenges in 2024, including higher mortgage rates, rising inflation and a cost of living crisis.

However, Zoopla says that there is still demand for housing, particularly from first-time buyers and cash buyers. Buyers are advised to do their homework and put themselves in the best position for the new year before making a decision about whether or not to buy a house.

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