The issue of house price recovery, which refers to the process of a property regaining its initial value, can be challenging, especially when house prices increase significantly or drop considerably. In the current economic climate, this can make properties less appealing to potential buyers.
Unfortunately, for both estate agents and vendors, many vendors choose agents based primarily on the valuation provided or the fees charged. This often leads to overvaluing properties, which benefits no one in the long run.
Sources & Statistics:
According to Zoopla, house prices have risen by 1.4% over the past few months of 2024. All areas of market activity are up year-on-year, and the long-awaited base rate cut has not yet had a major impact.
- 1 in 5 homes have had their asking prices cut by 5% or more, an above-average level indicating continued price sensitivity among buyers.
- It takes an average of 28 days to sell a home with no price reduction, but 73 days if you overprice and then need to reduce by 5% or more.
- Overall, house prices are projected to be 2.5% higher over 2024, with approximately 1.1 million sales. The average house price in the UK was around £266,400 as of July 2024.
While the price trend is generally upwards, there are some localised price drops. The housing market is now more balanced than it has been in the past five years.
According to the Homeowners Alliance, the two-year fixed-rate mortgage is at its lowest in years, currently standing at 4.98%. Mortgage rates are expected to decrease further, as lenders began reducing rates following the Bank of England’s decision to cut the base rate from 5.25% to 5% on 1st August 2024—the first cut since March 2020.
Labour Party Taking Over from the Conservatives:
With the Labour Party now leading the government, the UK housing sector is set for a significant transformation. Labour’s plans aim to tackle longstanding issues of affordable housing by proposing the construction of 1.5 million new homes, increased support for first-time buyers, and expanded social and affordable housing schemes.
These proposals are designed to create more opportunities for both potential and active buyers, boosting confidence in the market. Now, more than ever maybe the perfect time to take a few steps higher on the property ladder.
Our blogs and articles are correct at the time of writing.
These have been created for marketing purposes only and should not be considered as legal advice.
