The home prices in the UK are slowly ticking upward a year after they fell to some of the lowest rates in recent history. According to real estate agent Nick Millican, after the average UK property experienced a 0.8% drop in 2023, home prices are slowly starting to climb back upward.
The average home in the UK has lost 2% of its value as of November 2023 compared to one year ago, and the average property in the UK will cost the average buyer about 258,500 pounds if they are looking to purchase a home. As Nick Millican explains, the amount of homes that are being purchased is also at levels about 30% lower than they were pre pandemic.
These falling numbers have made the entire market in London a buyer’s market versus a seller’s market, which is what the market was as recently as a year ago. The fall in housing prices is relatively “weak” compared to previous falls in housing prices. However, Nick Millican shares, the entire process of falling housing prices has helped make a significant change.
Overall, in the expectations of what the housing market holds for the next few months into the future. These new trends can also help set future expectations for bank rates, interest patterns, and housing expectations into the future. It’s also expected, Nick Millican adds, that the Bank of England will begin to lower the currently high-interest rates.
These are the current rates that sit at 5.25% within the next year, as the housing market moderates itself and slowly begins to cool to a more normal level, Nick Millican finally adds. Buyers can expect a moderately lower borrowing rate in 2024 due to the higher interest rates that remain a problem for many potential buyers. Once these rates drop, the average borrowing level should return to close to “normal” pre-pandemic levels.