After months of uncertainty, could house prices be about to bounce back?

With the election over and mortgage rates beginning to fall, some experts are predicting a mini-boom in the property market. But others warn that the road ahead could be bumpy, with rising living costs and interest rates still a concern.

So, what can buyers and sellers really expect over the coming months? Inews spoke to several property experts.

Good News for Sellers?

Halifax’s latest figures show that house prices dipped slightly in June (down 0.2%) but are still 1.6% higher than this time last year. This suggests a stabilising market, with some experts predicting further growth before the year is out.

Aneisha Beveridge, head of research at Hamptons, believes house prices could rise throughout the rest of 2024. She points to falling mortgage rates and strong income growth as reasons for optimism.

Beveridge also predicts a “honeymoon period” effect from the new government, with increased confidence potentially leading to a 10% increase in house sales this year.

Knight Frank estate agency is even more bullish, predicting a 3% rise in house prices by the end of the year. Partner Oliver Knight argues that falling mortgage costs and a strong economy could fuel demand, particularly in the latter half of 2024.

Regional Differences Remain

However, experts caution that these figures are just averages, and the picture varies significantly across the UK.

Hamptons predicts growth of 2% in the East of England, but a 1.5% drop in the North West.

Beveridge notes that affordability remains a key issue, especially in the South of England, where prices could lag behind other regions.

Uncertainty Remains a Factor

Despite these optimistic predictions, not everyone is convinced that a housing boom is imminent.

Neal Hudson, an independent housing market analyst, warns that much depends on what happens with inflation and interest rates. While falling inflation could lead to lower mortgage rates and a more active market, he cautions that rising unemployment could have the opposite effect, leading to further price drops.

The Centre for Economics and Business Research (CEBR) offers a more cautious outlook, forecasting a slight fall in house prices by the end of the year. However, even this prediction is less pessimistic than their earlier forecasts, suggesting a growing sense that the market may have weathered the worst of the storm.

What does this mean for buyers and sellers?

If you’re thinking of buying, it’s important to do your research and be prepared for a competitive market. While prices may not skyrocket, they are unlikely to plummet either, so waiting for a bargain might not be the best strategy.

For sellers, setting realistic asking prices is crucial. Highlighting any unique features and ensuring your property is well-presented can help you stand out in a crowded market.

Ultimately, the rest of 2024 will likely bring a mixed bag for the housing market. While the outlook is more positive than it was at the start of the year, uncertainties remain, and careful consideration of your personal circumstances and financial situation is essential.