2023 was not the most predictable of years for the property market. So, as we begin 2024, what’s in store for homeowners and movers? There are three questions on the minds of analysts and house buyers alike: Will asking prices continue to fall? Will mortgage rates drop, and by how much? And lastly, will housing affordability improve?
House prices predicted to fall again
With the average asking price dropping by 1.3% in 2023 [1], many analysts predict prices will continue to decrease this year. While Rightmove forecasts a fall of 1%, others [2] believe prices could plummet by as much as 10%. This is largely due to the ongoing cost-of-living crisis, and a pressure on sellers to price competitively in a buyer’s market.
Tim Bannister of Rightmove commented, “In areas where sellers are struggling to attract affordability-stretched buyers or needing to sell quickly due to a change of circumstance, new job opportunity, or strong desire for a lifestyle change, we are likely to see even more competitive pricing.”
Will mortgage rates drop, too?
Despite mortgage rates declining in the second half of last year, the consensus is they will continue to remain high; some analysts [3] predict they will not lower to 4.5% until H2 of 2024 and the Bank of England has advised to not expect an immediate dip in interest rates. There are, however, some positive signs that both mortgage and interest rates have peaked.
Is mortgage affordability improving?
Mortgages became a little more affordable at the tail end of 2023 – in September, the average monthly repayment for those purchasing was £64 lower per month than in July [4]. On the other hand, the Bank of England expects that, by the end of this year, the number of households with increased mortgage payments will have risen by 1.6%.
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1 Rightmove, 2023,
2 finder.com, 2023,
3 Zoopla, 2023,
4 Octane Capital, 2023
🚨 Data accurate as of the date of publication – 21.02.2024
🚨Think carefully before securing debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.
🚨 The above material is for informational purposes only and does not constitute a sales offer or financial advice. Before taking out any insurance, credit agreement or other financial product, you should obtain individual advice on your requirements and the general terms of the contract.
Source: Quilter Financial Planning – Essentially Mortgages Q1 2024
