Savills has anticipated that the Bank of England will begin lowering interest rates in the second half of 2024, bringing its base rate down to 4.75% by year-end, compared to the current 5.25%. They also forecast a further decline to 1.75% by 2027.
Reports suggest that Savills expects house price growth to return, starting at 3.5% in 2025, increasing to 5% in 2026, peaking at 6.5% in 2027, and then slowing to 5% in 2028.
This forecast follows Halifax’s announcement that UK house prices rose last month after six consecutive monthly declines, as cautious sellers contributed to a shortage of homes on the market.
As of October, the average property price was £281,974 — a 1.1% increase from September (around £3,000). This contrasts with the same period last year, when prices fell by 3.2%.
Lucian Cook, Savills’ Head of Residential Research, stated: “Interest rates are expected to have peaked and the worst of the house price falls look to be behind us, but the first cut to rates still looks to be some way off.”
In response to this article, Nick Hay, Partner at Jones Whyte has said: “With key players in the residential sector signalling a shift toward better market conditions, we are looking forward to increasing levels of activity from both buyers and sellers in 2024. In this challenging but improving market, our experts are on hand to guide our clients and ensure they get the best deal possible as they take their next step on their property journey.”
If you’re looking to secure your dream home, our personable and highly qualified team will take the time to understand what is important to you and provide bespoke advice. Jones Whyte aims to make the purchase of your first home a smooth and stress free experience. Contact the Jones Whyte property team today.
Check out the full Guardian article below:
UK housing market is past its ‘peak pain’, declares Savills | House prices | The Guardian
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