According to a forecast by Zoopla, house prices in the UK are expected to rise by 2% towards the end of 2024. This positive outlook for the housing market is attributed to an increased number of homes for sale, with the number of sales agreed in the recent weeks being 16% higher than the previous year. Buyers are now paying 96.8% of the asking price, the highest figure in 18 months, with properties selling for an average of £16,600 below their asking price in June 2024.
Richard Donnell, an executive director at Zoopla, stated that there are clear signs of growing confidence among buyers and sellers, and more sales are expected. However, house price inflation is expected to be kept in check by more supply and affordability pressures, particularly in southern England.
Experts are divided on whether there will be an interest rate cut on August 1, but there is a strong chance of a rate cut before the end of 2024. The housing market is adjusting to higher mortgage costs after interest rates began rising in 2022, with house prices increasing across all regions of the UK in the first half of 2024.
It is noted that many buyers are looking for larger homes to accommodate a growing family, leading to an increasing number of buyers looking farther afield to find the home and features they desire. The new government’s plans are not expected to have a significant impact on the housing market in the short term, but the Bank of England’s decisions, especially regarding interest rates, will play a significant role.
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