Insights

Finally some good news for homeowners…but don’t hold your breath

Some good news for homeowners seems like a story you might tell people around the campfire. A boom time long forgot; the stuff of legend.

Perhaps that is a slight exaggeration but the rapid price decreases many property owners, have been struggling with, may be turning.

Good news for homeowners

It comes as new research has predicted that average house prices are to be £45,000 higher by 2028.

Yes, we know it is 2023, but there is light appearing at the end of the tunnel.

Savills, which released the research, said the market looks set to “bottom out” around the middle of next year (2024).

The average UK house price is projected to fall by 3% in 2024, after a 4% drop this year.

Prime central London dwellings, which attract international and wealthy UK buyers, is the only market segment projected to avoid price falls in 2024, reports The Guardian.

Across the UK, the average property value will increase to £300,108 in 2028. This marks a £45,521 or 17.9% increase from an average house price of £254,587 in 2023, according to the property company.

Lucian Cook, head of residential research at Savills, said: “Interest rates are expected to have peaked and the worst of the house prices falls look to be behind us, but the first cut to rates still looks to be some way off.

“This means continued affordability pressures are likely to result in further modest house price falls over the first half of 2024. Thus resulting in a peak-to-trough house price adjustment in the order of minus 10%.

“The expectation of a gradual reduction in rates suggests a progressive restoration of buying power and steady recovery in demand.”

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