The Move Home Faster Blog

Latest UK Housing Market Improvements February 2024

Posted in Tips & Guides on by

If you’ve been holding off putting your home on the market, now could be a great time to reconsider as we begin to see real signs of recovery in the UK housing market. Read on to find out more.

Spring UK Property Update

2024 kicked off with an air of cautious optimism in the property market, and that sense of confidence does appear to be translating into an uplift in both sales and the reversing of the steady decline in house prices.

According to the Office for National Statistics, In the 12 months up to December 2023, the average home value decreased by 1.4% compared to the 2.3% annual fall recorded the previous month.

The property market slowdown that we witnessed last year then, triggered largely by the increase in mortgage rates and continued squeeze on household finances, may finally be nearing an end with some small green shoots now evident.

The beginning of 2024 has seen good improvements in market activity with a 16% increase in agreed sales so far this year compared to the previous year. 

In addition, the Bank of England is forecast to cut interest rates in 2024, with rates expected to drop from 5.25% to 4.5%, a move that will see lenders improve the rates offered on their newest 2 to 5-year fixed mortgage offers.

Some of the positive signs we’ve spotted

  • Small decreases in mortgage interest rates
  • Increase in the volume of agreed sales during the past 6 weeks of 2024 compared to 2023
  • Small rise in house prices

Perhaps one of the most promising signs so far is reported by Halifax, who say that house prices were up by 1.3% in January, demonstrating the 4th month of steady, consecutive rises.

Whilst we are undoubtedly seeing some much welcome signs of recovery, continued momentum isn’t a given, so maintaining an air of cautious optimism is advised. Indeed Lloyds Bank, one of the UK’s largest mortgage lenders, made it clear that despite some positive signs, forecast uncertainty remains high.

There is much to be said for a more bullish attitude however, and with many homeowners still waiting to move after many months with their plans on hold, and first-time buyers impatient to get onto the property ladder, waiting until things pick up more could mean facing much fiercer competition later in the year.

If you are still nervous about putting your property on the market and instead want to wait until we’re further into 2024, then now is a good time to make sure you’re ready to respond quickly when you believe the time is right.

Get started by getting a home valuation and you can get a fast, great-value conveyancing quote here.

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