UK house prices will continue to fall this year and in 2024 and will not start to recover until 2025, Lloyds Banking Group has predicted.
Britain’s largest mortgage provider, which owns Halifax and Bank of Scotland, said that by the end of 2023 house prices would have fallen 5% over the course of the year and were likely to decrease by further 2.4% next year.
The latest forecasts suggest an 11% drop in property prices from their peak last year.
Santander is predicting a larger drop in UK house prices for the whole of 2023 of about 7%, followed by a smaller 2% fall in 2024.
Halifax-owner Lloyds Banking Group predicts prices will drop 4.7% this year and by a further 2.4% in 2024 before recovering.
Lenders have blamed higher borrowing costs for a slowdown in house sales.
Both lenders said the first signs of growth would start to emerge only in 2025, with Lloyds economists predicting a 2.3% increase in house prices that year and Santander expecting a 2% rise.
These reports do make me giggle..
“Softer than in previous years” do me a favour it’s been hell this year and getting even harder. Swimming in price reductions in the market right now – 4.7%. Nonsense. It’s dropped 15% easily – their data is so lagged.
No wonder buyers are not buying right now as they don’t know the truth of what is exactly happening! Put it on the table and then we can move on.
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For us it is entirely dependent on where the property is sitting in the market.
Under £300,000 is tough.
£300,000 – £550,000 is going fairly well.
£750,000 and up is tough.
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Where are you geographically? Its like the Dead Sea here – phone not ringing at all. FTB’s picking up ex-rentals for peanuts and that’s nearly dried up now
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North, we are usually around 12-18 months behind whatever the rest of the country is doing as it ripples up from London.
Don’t get me wrong it is not the market that we have enjoyed for the last few years but in that mid-range price level there still seems to be money to be made.
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11% drop FROM THEIR PEAK, which was – in our area at least – 20% higher than pre-covid.
So, a correction then.
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11% down from peak – we all know (or we should) that the market post pandemic has been a boom and that the inflated pricing we’ve seen could not be sustained long term.
The drop in prices is a correction back to a more stable market environment. The real question is are we educating our sellers on this, or are we continuing to over egg the price to win their instruction?
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It’s more than a correction. Some prices are back to 2015/16 levels.
Prices don’t concern me. Transaction levels concern me, they are heading for a disaster. Educating sellers is vital – totally agree.
We are a very strong operation but this market is not for the faint hearted. Office closures happening right left and centre right now which for us is opportunity. Brutal but true.
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loads of agents will go broke
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