Quick Bites

• UK house sales are projected to maintain a steady 1m in 2024.
• Housing price inflation slowed dramatically from 9.6% to -1.1% over the past year.
• 4 out of 5 local housing markets observed a decrease in annual prices.
• Transactions are expected to see a 23% drop in 2023 compared to 2022.
• First-time and cash buyers are taking the lead, representing 2 out of 3 sales in 2023.
• Predictions suggest a 2% dip in UK house prices for 2024, but increasing incomes might help improve housing affordability.

Deep Dive

• The housing market, which previously saw significant growth, is now facing challenges in 2023. With 4 out of 5 markets experiencing price falls and transactions witnessing a significant dip, the year appears to be challenging.
• On the bright side, despite the market's current state, first-time and cash buyers are showing confidence, making up a large portion of sales this year.
• Mortgage Issues: As the economy witnesses slow growth, increased mortgage rates and living costs are impacting buyer demands. This has resulted in a swift deceleration in price growth, moving from +9.2% to -1.1%.
• Regional Insights: Southern England, which previously led in price hikes, is now experiencing reductions. Cities like Colchester, Canterbury, and Luton are seeing notable annual price drops.
• Looking Forward: With UK house prices expected to drop by 2% in 2024, the housing market remains on the expensive side, especially with 5% mortgage rates. However, if mortgage rates can return to a more approachable 4%, sales might surpass the predicted 1m in 2024.

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