House prices, which naturally pique the interest of homeowners, buyers and investors alike, are influenced by economic, social and legislative factors.

Current Trends in UK House Prices

The UK housing market saw the average price at £259,000 in late 2023, marking a slight correction after post-pandemic growth.

Interest rate hikes, cost-of-living pressures and limited supply have led to more moderate price changes.

Marginal Growth in Rural Areas

Demand for countryside living continues to fuel modest price rises in regions like Yorkshire and the South West.

City Centre Stabilisation

Urban values are stabilising as professionals return to offices in hubs such as Manchester and Birmingham.

First-Time Buyer Challenges

Higher rates have reduced purchasing power, making deposits and mortgage costs tougher for new buyers.

Factors Influencing UK House Prices

1. Economy and Interest Rates

The Bank of England’s rate now sits at [current rate], directly impacting mortgage affordability and buyer demand.

2. Supply and Demand

Chronic housing shortages keep demand above supply, maintaining upward pressure on prices.

3. Government Policies

Stamp duty holidays, buyer schemes and tax changes for second homes shape market behaviour.

4. External Events

Brexit, inflation and geopolitical risks affect construction costs and buyer confidence.

What’s Next for UK House Prices?

Experts forecast a price-growth plateau in many areas, letting incomes catch up with housing costs.

Regional variations will persist, with northern regions like Scotland seeing stronger growth than the South East.

Shift in Mortgage Preferences

Tighter affordability may drive buyers toward interest-only or longer-term mortgages to lower payments.

Buying or Selling in 2024?

For Buyers

Be financially prepared and focus on long-term value over short-term market swings.

For Sellers

Price competitively and boost kerb appeal with minor renovations to attract cautious buyers.

Your Next Steps

Navigate the UK housing market successfully by monitoring economic indicators, policies and local trends.

At Advisors Gateway, we provide expert advice, market insights and tailored solutions to equip you with confidence.