The UK house prices fell 1.8 per cent during 2023 according to mortgage lender Nationwide, which has subsequently revealed a similar forecast for the year ahead.
The latest official data which includes cash purchases as well as those involving mortgages, reflecting sales that have been finalised – shows prices fell by 1.2 per cent in the 12 months to October 2023.
The timely Nationwide and Halifax indices however, captures deals still in the pipeline, revealing a stabilising of prices in recent weeks.
Nationwide stated on Friday, 29th December that property prices remained flat for both November and December 2023, some 4.5 per cent less than the peak they reached in the summer of 2022, forecasting that property prices will likely remain flat or decline up to 2%. In contrast, the other big mortgage lender Halifax, Nationwide’s biggest rival, suggest a more cautious approach of properties declining by a further 2-4%.
The figures seen in 2023 reflect the impact of high mortgage rates on potential home buyers, after the Bank of England raised the cost of borrowing in February 2022 to 0.5% (from 0.25%) and then incrementally on 14 further occasions for the next 18 months thereafter leading to a 15 year high of 5.25% in August 2023.
In more encouraging news, the Bank of England held the interest rates on three consecutive occasions up to December 2023, indicating a flattening of inflation, providing greater confidence to the general UK market and subsequently the housing market.
Although more recent signs are “encouraging” for potential home owners, Robert Gardner, Nationwide’s chief economist stated that “a rapid rebound in activity or house prices in 2024 appears unlikely.” Gardner further stated that “it appears that likely that a combination of solid income growth, together with modestly lower house prices and mortgage rates, will gradually improve affordability over time.”
When it comes to those with a disability, when it concerns housing and purchasing or renting, higher costs apply compared to the average consumer.
Part of this is of course the size of dwelling required and space around the home to accommodate potential further development, but a large part of this is also attributed to demand outstripping supply when it comes to single storey homes.
Larger single storey homes are generally found within more expensive, high demand areas and there is therefore stiff competition from other buyers.
It is therefore less likely that house prices are going to be affected to the extent that deals can be had. On the other hand, for those occupying larger properties, they will benefit from more of a sellers market compared to other property types.
Article Sources:
https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/housepriceindex/march2023
https://www.bankofengland.co.uk/boeapps/database/Bank-Rate.asp
https://www.ft.com/content/6733af88-b312-450d-a1ae-6de1402e0784
https://moneyweek.com/investments/house-prices/house-prices-slide-september-halifax-data
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