UK House Prices on Track to Rise 3% in 2024, Says Leading Agent
UK house prices are on track to beat forecasts of a decline in 2024, a leading estate agent has said, as a mortgage pricing war and expectations of Bank of England interest rate cuts rekindle the property market.
After a year of sustained price falls in 2023, the global property consultancy Knight Frank said it was updating its forecast for UK house prices to rise by 3% in 2024, up from an earlier estimate of a 4% drop.
Against a backdrop of falling inflation and growing anticipation of interest rate cuts, it said it expected that rising mortgage approvals seen in recent months would translate into at least a 10% increase in transactions this year.
The online property website Rightmove said asking prices for new sellers had risen by an average 1.3%, or £4,571, between December and January, the biggest increase for the time of year since before the pandemic.
While prices overall remain 0.7% lower than a year ago, it said there had been a “tentatively promising” start to the year, with 15% more new properties coming on to the market, and growing buyer demand. About 20% more sales were agreed at the start of January than at the same time a year ago, indicating returning confidence, it said.