House prices to deliver positive growth in 2024

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The UK housing market is expected to rebound in 2024 despite predictions of a fall due to a competitive mortgage market and anticipated interest rate reduction by the Bank of England.

Knight Frank announced that it was revising its prediction for UK house prices to climb by 3% in 2024, up from an earlier projection of a 4% decline, following a year of consistent price declines in 2023.

Prior to the last three months, banks, building societies and estate agencies all projected declining property values by 2024. However, are-evaluation has been brought about by a series of surprise monthly increases and a greater decline than anticipated in the official UK inflation rate.

Even while political pundits have speculated that this would benefit Rishi Sunak during an election year, millions of homeowners should still expect to see a significant increase in their monthly mortgage payments when their lower-interest loans expire.

This is expected to have a significant effect on the rental market, as more people look to extend leases in a bid to wait longer for lower interest rates in 2025. Undersupply does continue to create challenges for much of the property industry, and with developers still pushing hard to meet demand, we can anticipate the UK space to continue to see further positive growth.

If you would like to know about the UK property market, speak to a member of the IPG team today.

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