While most of the UK braces for a drop in property values, the North East region emerges as a beacon of growth in early 2024. According to the home moving quote service, reallymoving, the North East is not just holding steady but actually witnessing a significant increase in property prices. The first quarter of 2024 is expected to see a robust 6.7% rise in the region, pushing the average property value to £178,287. This growth stands in stark contrast to the broader UK trend, where property prices are predicted to fall by 3.6% in the same period.
The Wider UK Property Landscape
The forecast isn’t as bright in other parts of the UK. Yorkshire & the Humber, the South East, and Northern Ireland are set to experience notable declines in house prices, with estimated quarterly falls of 7.2%, 7.0%, and 5.6%, respectively. These figures paint a concerning picture for homeowners and potential buyers across the UK.
Rob Houghton, the founder and CEO of reallymoving, provides a deeper understanding of the current market dynamics. He explains, “Based on sales agreed at the end of last year we can expect to see more downward movement in house prices at the start of 2024, but probably not for long. There’s a good deal of pent-up demand from movers who held off last year and we’re already seeing much higher demand for conveyancing quote services. It’s been painful, but many buyers have now adjusted to higher borrowing costs and if mortgage rates continue to fall steadily, as the traditional spring buying window opens up I expect we’ll see significantly more buyers making the decision to enter the market.”
Economic Factors and Market Sentiment
The general economic climate, characterised by high inflation and a sense of gloom, has been a major factor in slowing down the housing market. But as mortgage rates start to ease, there’s an emerging sense of optimism. This is evidenced by a 73% surge in new registrations for home move services on reallymoving compared to the same period last year, covering areas like conveyancing, surveying, and removals. However, it’s important to note that the start of 2023 was significantly affected by the aftermath of the so-called ‘mini-Budget.’
Advice for Prospective Buyers
For first-time buyers, who now represent 61% of all home movers, the current market offers a mix of challenges and opportunities. Houghton advises these buyers to plan ahead, suggesting they consult with mortgage brokers and apply for an agreement in principle. This planning is crucial for capitalising on potential further drops in mortgage rates and the lower house prices.