05 January 2024
If you are covering the latest Halifax house price index, please see the following comment from Karen Noye, mortgage expert at Quilter:
“Figures from Halifax this morning reveal house prices saw a monthly uptick of 1.1% at the end of 2023, the third consecutive monthly increase, resulting in a 1.7% increase year on year. House prices consistently defied expectations that they would plummet throughout 2023, and this uptick highlights just how resilient the housing market has been over the last year despite the volatility it has faced.
“As we look ahead to the rest of 2024, the housing market turmoil seen over the past couple of years is expected to dissipate further. Many lenders have been reducing their mortgage rates as swap rates have lowered, and lower transaction levels have prompted a healthy competition between lenders vying for business. This could lure prospective buyers back to the market and further prop up house prices. Figures from the Bank of England released just yesterday echo this, as net mortgage approvals for house purchases rose from 47,900 in October to 50,100 in November showing demand is making a slow return to the market.
“2023 was an incredibly tricky year for the housing market as high interest rates and cost of living pressures saw many put house purchases on hold, but it appears to have weathered the storm well. Though Halifax has predicted a fall in house prices of between -2% and -4%, the overall outlook for 2024 remains relatively optimistic. Affordability will still be challenging this year given higher interest rates, but a reduction in mortgage rates has already started to materialise and those looking to secure a fixed rate mortgage may find that deals continue to become more palatable in the coming weeks and months, though rates will still be much higher for those coming off long term deals from the period of very low interest rates. We are likely to see gradual, small changes as opposed to a significant fall, but lenders are updating their product ranges regularly and we are generally seeing further reductions each time they do. For those looking to purchase a new home this year, it will be vital to seek professional mortgage advice to ensure you are making the best possible decisions for your circumstances.”
