The UK housing crisis has been a rough time for people in the country, especially in London. While prices have overall been at historic highs, there have been some strange occurrences within the market such as wildly fluctuating prices. This has been the result of many factors including legislation and a lack of confidence in the market itself; Greycoat Real Estate knows that by looking at these factors, we can get a clearer picture of what’s going on with the UK real estate market.
Toward the end of 2023, the prices for residential housing have fallen significantly; according to Greycoat, this is odd because demand surged around this time as well. However, even with this drop, prices still weren’t as low as they were in March.
Greycoat Real Estate has identified downward pressure affecting mortgage rates and inflation as the cause of this anomaly. They predict that prices will continue to fall for the first quarter of 2024 but will likely rise again. As confidence in the market continues to bounce back, it is unlikely that there will be an end-of-the-year spike in demand in 2024 as there was this year.
Stability and Interest Rates
Even though prices are unlikely to return to pre pandemic levels anytime soon, demand is still growing. This is when Greycoat agents come in.
Now that the market is more stable and interest rates are more affordable, more people can afford to buy homes. Greycoat Real Estate notes that interest rates currently sit at 5.25% and have yet to meet the Bank of England’s goal of 2%.