UK housing market shows recovery with price declines in January

Posted on February 16, 2024   |  

The UK housing market is expected to bounce back in 2024 despite a £4,000 drop in average house prices last year.

Average home prices fell by 1.4% in the 12 months up to December 2023, showing improvement from November's 2.3% decline.

The slowdown triggered by rising mortgage costs in 2023 may have ended, with house prices stabilizing.

Despite the £4,000 drop to £285,000 in December, pent-up demand from buyers with access to cheaper mortgages could drive prices back up.

Anticipated interest rate cuts by the Bank of England might lead to reduced mortgage offers.

England saw the highest average prices and the largest fall last year, down 2.1% to £302,000, while Wales experienced a 2.5% decline.

Scotland's lowest average price witnessed a 3.3% rise to £190,000, closing the price gap across the UK.

Regional variations show the north-west of England with the highest increase at 1.2%, while London saw the lowest at -4.8%.