The UK housing market is poised for a dynamic year in 2024, with promising figures leading the way.
- House sales are projected to rise by 30%, elevating the sales pipeline value to £113 billion.
- This surge is fuelled by increased incomes and the lowest mortgage rates in two years, boosting buying confidence.
- House prices see a steady growth with more affordable regions experiencing robust value increases.
- First-time buyers are set to dominate the market, capitalising on favourable buying conditions.
The UK housing market is on the brink of a promising year, with house sales anticipated to climb by 30% compared to the previous year. This upward trajectory inflates the sales pipeline to a substantial £113 billion, as noted by recent Zoopla figures. This development reflects a considerable uplift in market activity, marking the highest level of new sales since late 2020 and signifying renewed buyer and seller confidence.
Several factors are contributing to this optimistic forecast. Rising incomes across the UK and the lowest mortgage rates seen in two years are pivotal in fueling this surge. The invigorated market enthusiasm is a testament to improved economic conditions, encouraging both first-time buyers and existing homeowners to engage in property transactions.
Despite this invigorated activity, house prices have shown only modest increases with a 1% rise over the last year. This stability in pricing is attributed to a substantial selection of homes on the market coupled with affordability concerns. Regions such as the North-East, Yorkshire & Humberside, and Scotland are experiencing above-average price rises, suggesting a diversified regional market landscape.
Conversely, areas like Eastern England and the South-East have seen slight decreases in house prices. Nevertheless, the overall trend points towards a potential 2% increase in UK house prices throughout 2024, as previous declines are phased out from the annual inflation rate.
Interestingly, the burgeoning sales are driven largely by first-time buyers, predicted to account for 36% of all 2024 transactions. This trend is closely followed by existing homeowners and cash buyers. This shift is significantly influenced by the evolving dynamics between renting and buying, with reduced mortgage rates making buying a financially advantageous option over renting for the first time in years.
Furthermore, Zoopla reports a robust momentum in new sales, expected to persist into December. This momentum is underpinned by a high availability of homes, with many deals anticipated to reach completion in early 2025. Such patterns underscore the persistent appeal of the housing market, buoyed by economic improvements and enhanced buyer incentives.
The UK’s housing market is set to achieve remarkable growth in 2024, marked by increased sales and a supportive economic climate.