Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Strategy. Read the original article for full details.
The UK housing market has experienced less volatility in recent weeks, with some signs of improvement in economic conditions. However, forecasters have revised their outlook for house prices in 2024, and concerns about inflation and economic growth remain.
The sector has recently seen fewer dramatic changes, with the market described as having "shallower" drops and less turbulence. There have also been indications of "green shoots" in the economic landscape, suggesting some early signs of recovery.
The UK economy has recorded unexpected growth, reportedly the strongest in the G7, and inflation has dipped to 2.8%, supported by a lower energy price cap and slower food price rises. Despite these positive developments, the wider economic picture remains uncertain. The OECD has warned that UK growth could fall below 1% this year, with unemployment potentially moving towards 5.5%. Inflation is also expected to rise again, possibly towards 4%.
For homeowners, the Office for National Statistics (ONS) has reported that those with a mortgage have experienced the highest levels of cumulative inflation, at 37.6%. This figure reflects the combined impact of rising living costs, energy bills, and remortgage pressures.
In the housing market, some forecasters have made significant changes to their predictions for 2024. Savills, for example, has revised its outlook from a 2% house price growth to a 2% fall overall for the year.
Letting agents and inventory clerks should note these shifting market conditions and the ongoing economic uncertainty, as they may impact rental demand, property values, and client expectations in the months ahead.
Source: Mortgage Strategy