As the UK housing market navigates the aftermath of rising interest rates, the cost-of-living crisis and other economic challenges, there are promising signs that the worst may be behind us.
Interest Rates
Interest rates have a significant influence on the real estate market. As interest rates fluctuate, so does the cost of borrowing for potential homebuyers. The increased cost of financing has led to a decrease in home prices, as the pool of potential buyers diminished. However, the Bank of England is expected to start lowering the base interest rate in the latter half of 2024 and future forecasts point towards a plateau in interest rates next year, signalling a potential end to the most significant dips in house prices.
The Future for the Property Market
As affordability is still a challenge for many, there will likely still be a small decline in property prices in the next few months. As a consequence, property transactions for this year are anticipated to conclude slightly lower than in 2022, with a similar outlook for the following year.
However, Mortgage provider Halifax said house prices rose last month after six consecutive months of price falls. Following a tumultuous twelve months, the latest five-year house price projections suggest that the UK’s housing market has moved beyond its most challenging phase and is poised to reach its lowest point around mid-2024. It will then be followed by a slow resurgence fuelled by population pressures and a more robust economic outlook.
If you are planning to sell your property, now could be a perfect time to start looking for conveyancing solicitors Birmingham like those at https://www.samconveyancing.co.uk/Conveyancing-Solicitors/conveyancing-solicitors-birmingham.
Despite these uncertainties, the prevailing sentiment suggests that the UK housing market is on a path toward recovery, demonstrating its historical resilience in the face of economic challenges.
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