With house prices falling modestly across the UK as a whole, but rising slightly in the north, 2023 was a year in which the property market was in the doldrums. But is that situation now changing?
Property website Rightmove has published its February House Price Index, with the revelation that the average asking price this month has increased by £3,091 to £362,839. This means that after six months of prices drifting downwards, prices are now up on a year ago, albeit only by 0.1 per cent.
Moreover, agreed sales in the first six weeks of 2024 are up by 16 per cent on the same period last year, suggesting that the market is starting to regain momentum.
You might ask what this means if you are looking for a home in Chorlton. One thing worth noting is that Rightmove identified an underlying trend showing the market to be highly price-sensitive; properties that were realistically priced have been getting snapped up, while those in which the asking price is high have been given a wide berth by most buyers.
Rightmove’s director of property science Tim Bannister said: “Buyers now have more choice of property for sale and many are still very price-sensitive, with mortgage rates remaining elevated.”
This suggests there are plenty of good opportunities out there, something that could improve if mortgage rates fall soon.
Some might be surprised at this development since the UK is now known to have slipped into recession in the second half of 2023. However, most experts believe growth has resumed in the early weeks of 2024, albeit modestly.
Moreover, after the Bank of England stopped raising interest rates last September, most will expect the next rate change to be downward, even if it is far from clear that this will be soon. With the Bank of England’s eye on an expected uptick in inflation, the next rate cut might still be several months away.
