Jackson-Stops comments on the ONS House Price Index for November 2023

Nick Leeming, Chairman of Jackson-Stops, comments on the publication of the ONS House Price Index for November 2023.

The ONS House Price Index, published 17 January 2024, shows that the average UK house price decreased by 2.1% in the 12 months to November 2023, the largest annual fall since 2011, with the average house price now set at £285,000.

Nick Leeming said:

“The figures published today suggest a frosty end to the year with buyers putting their searches on hold in order to see how mortgage rates would react as inflation fell once again.

“2023 was defined by mortgage affordability pressures and a shift from immense competition, towards a smaller, more committed buyer pool.

“While higher mortgage rates will continue to weigh on the majority of buyers’ minds, falling inflation will sow the seeds for a busier start to the market in 2024.

“Lifestyle will be the dominant call for the majority of buyers, driven by distance to work, expanding and retracting families, and home needs.

“This committed pool of buyers will be targeting only the best-in-class homes as sale listings increase, making price a significant determining factor for a successful sale.

“The frenzied market that emerged post-pandemic is not the case anymore.

“Even as buyers adjust to higher mortgage rates the need to get better value from the property itself is likely to play a part in final agreed prices.

“The 2024 property market is also likely to be impacted by an election.

“Always a divisive issue, housing is likely to be pushed up the political agenda with major parties both challenging for the hearts and votes of current and prospective homeowners.

“Supply shortages, market liquidity, and the increasing age of first-time buyers, are all likely to be key discussion points for parties to define positions on.

“In the coming months, the property market will be gathering around its crystal ball to predict what all political outcomes could mean for local and national property markets.”

Kindly shared by Jackson-Stops