Pent Up Demand Gives Early 2024 Boost to UK Housing Market

As we enter February, the modest falls in house prices seen last year are slowing as agreed sales increase in early 2024.

The average house price in the UK had an annual difference of -0.8% in December 2023, compared to a -1.4% dip in October 2023.

Price falls have mainly affected the East of England (-2.5%) and the South West (-2.2%). In terms of house price increases, aside from Northern Ireland (3.20%) and Scotland (1.80%), Yorkshire and Humber and the North West were the top two regions, with rises of 0.50% and 0.30% respectively.

Here’s a full breakdown of UK house price changes by region:

New sales have increased across all UK regions, but London and the East of England have seen the biggest comeback regarding buyer demand.

However, that’s not to say that these areas had the highest sales. According to Zoopla’s House Price Index, although other regions had more considerable increases in Sales (+19% in Yorkshire and the Humber, for example), these increases were typically in line with last year’s growth. They believe London’s buyer demand rebound could ‘reflect a turn of fortunes for the London housing market.’

This increased demand has been observed across all London areas, including inner London, up-and-coming areas of London, and commuter towns.

London has trailed behind other regions over the past 7 years when it comes to price growth and sales. For example, the price of a flat in the capital has increased by only 2% in this time frame. Currently, London is the most affordable it has been since 2014. But it’s still much pricier than the UK average, meaning investment properties in London may remain less prevalent compared to other regions.

Zoopla forecasts that London’s market conditions will continue to increase this year, thanks to rising earnings and slower house price growth boosting sales numbers.