Despite predictions from two major mortgage lenders of further price drops next year, the National Association of Property Buyers has forecasted an increase in house prices across various UK regions in 2024.
This prediction comes amidst a notable shortage of homes and low-key plans for house building in the upcoming year, likely benefitting many sellers.
Jonathan Rolande, spokesperson for the association, said: “It has been estimated that, overall, all regions will experience house price falls next year, ranging between -1.5% and -4%.
“But with each passing week, I think these predictions are looking wider and wider of the mark. In fact, I believe many towns and cities outside of London can expect to see price rises every month throughout 2024.”
Regions such as Halifax in West Yorkshire and Motherwell in North Lanarkshire in Scotland, which have already witnessed price rises of 3.6% and 2.4% respectively, are expected to continue this trend.
Rolande also identified Margate, Ramsgate, Bolton, Liverpool, Reading, Derby, York, Rotherhithe in London, and Aberdeen as areas likely to see sustained growth.
“These are all areas where property prices are rising,” Rolande explained. “And I don’t see any evidence of that changing in 2024 given the way the market is going. Two things are driving price rises in these areas.
“One is a shortage of available property, and the second is the fact there is no clear roadmap to housebuilding to address that supply shortage. Buyers in these spots are therefore willing to pay a little bit more as they are desperate to get their foot on the ladder.”
On the other hand, London and parts of the southeast, including Essex and Kent, are anticipated to face challenges in achieving price rises. “These are the areas which have enjoyed a golden period of price rises,” Rolande noted. “That couldn’t last forever, and we are now seeing prices begin to flatten and fall.”
The housing sector is expected to be a major focus in the upcoming General Election, with potential policy shifts from the main political parties, possibly influencing the market. “This could also help prices to rise. A new Government can often inject a feel-good factor into the market and into the economy. After a challenging 2023, this will be welcomed by those working in the sector,” Rolande added.
