Housing affordability to improve steadily in 2024

Forecasting from the online real estate company suggests house prices will fall by two percent over the course of next year – coinciding with the growing rise in wages. Despite this, mortgage rates look set to remain higher for longer.    

It comes as, in its latest house price index, prices dropped by 1.1% or £2,830, in the 12 months to October – with buyer demand now a fifth lower than this time last year and 25% below the five-year average for October.  

It’s the second time Zoopla has registered an annual fall in house prices for more than a decade – with the only overtime coming last month, when house prices fell by 0.5% compared to a year prior. In addition to this, house prices are now falling in all regions in England, with the biggest price drops being seen in the east and south east – dropping by 2.4% and 2.2% respectively.  

Meanwhile, of all UK regions – only Scotland and Northern Ireland have seen a rise in house prices in the last 12 months, going up 1.2% and 1.1% respectively. Meanwhile, house prices are still rising slowly in Edinburgh, Belfast and Newcastle – while prices have risen by just 0.1% in Leeds, Birmingham, Liverpool and Manchester in the last year.

However, house prices have fallen less than many expected as the economy continues to grow slowly, the labour market is strong, and incomes are growing. Additionally, lenders are supporting customers to refinance – limiting the number of forced sellers in the market.