The UK housing market has shown resilience and variation across different regions as of early 2024, with recent updates providing insights into trends in house prices, rental markets, and mortgage rates.
House Prices
House prices grew by 0.7% in January 2024, bringing the annual growth rate to -0.2%. This stabilization follows a period of fluctuating mortgage rates and economic uncertainties. The South of England experienced the most significant price falls, highlighting regional disparities. For instance, Rossendale saw the greatest growth at 5.9%, whereas Hastings faced the largest decline at -8.4%.
Mortgage Rates
The landscape for mortgage rates is changing, with signs of increasing demand as rates begin to fall. The speculation has shifted towards the number and timing of rate cuts in 2024. Significant lenders like Halifax and Leeds Building Society have already made cuts to their mortgage rates, signaling a positive outlook for the property market.
Rental Market
Rental growth across the UK slowed down, with annual growth standing at 8.3% in 2023, a slight decrease from the previous period. This slowdown is observed across all regions, though the growth rate remains historically high. London continues to have the highest annual rents inflation, despite a slight decrease from its peak.
Market Outlook
The UK housing market is poised for a strong 2024, supported by the anticipation of mortgage rate cuts and potential pre-election policy measures aimed at stimulating demand. These developments, alongside a more optimistic economic outlook, are expected to boost market activity.
Conclusion
For detailed analysis and further information, you can explore the insights provided by Savills for February 2024, Savills for January 2024, the Office for National Statistics’ update on the rental market, and Knight Frank’s perspective on mortgage rates and market demand.
