According to a forecast by Zoopla, house prices in the UK are expected to rise by 2% towards the end of 2024. This positive outlook is due to an increased number of homes for sale, with the number of sales agreed in July 16% higher than the same period last year. Buyers are now paying 96.8% of the asking price, the highest figure in 18 months. Average properties are selling for £16,600 below their asking price in June 2024.
The Bank of England’s recent data showed that net mortgage approvals remained largely unchanged in June, indicating a stable property market. Richard Donnell from Zoopla noted a growing confidence among buyers and sellers, with more homes for sale and buyers paying an increased proportion of the asking price. Despite uncertainties around the new government’s plans, experts believe that the Bank of England’s decision on interest rates will have more impact on the market in the short term.
Simon Gerrard, a former president of the National Association of Estate Agents, suggests that the base interest rate may come down in August or September, which could spark property searches that have been on hold. The housing market is adjusting to higher mortgage costs after interest rates began rising in 2022, with house prices increasing by 0.1% over the past year.
Zoopla also notes that many buyers are looking for larger homes to accommodate growing families, leading to increased demand in the market. Overall, the forecast for the housing market in the UK shows a positive outlook for the second half of 2024.
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