Rising Above: Encouraging Signs in the Face of UK Housing Challenges

In the midst of all the doom and gloom about the UK housing market, we take a down-to-earth look at the situation. Whilst there are still real challenges, a closer look at recent events as well as an understanding of what is going on in different areas, shows a more optimistic picture than you might have anticipated. To get a realistic picture we compare the market to the pre-pandemic years, recognising that in every sense possible 2020 through to mid-2022 was a totally abnormal situation for the entire world.  

2023 Trends: Unexpectedly Hanging Tough 

Despite what you might have heard, the latest info from Rightmove says that 2023 has been surprisingly stable. Even though the average price for homes went down 1.7% in a month, the year overall has shown a steadiness that's a far cry from the rollercoaster of 2022. Sellers continue to put properties on the market and the market has settled down considerably following the political and economic chaos a year ago.  

Sales and the Market: Getting Back on Track  

Sales might still be lower than they were in the pre-pandemic world of 2019, but things are already looking up from last month. This hints at a slow recovery and a market that's starting to figure out the new normal. Remember the panic about not enough homes being available as sellers were going to stay put? The reality is that we're just 1% short of the number we had back in 2019, so it really isn’t the negative picture some people were expecting.   

Different Areas, Different Markets 

The UK housing scene isn't one-size-fits-all. Some areas might be going through a challenging time, but others are doing exceptionally well. While the South might be seeing prices drop in Wales, Scotland, and the North of England things are already looking up for freshly listed homes. Also, the Base Rate staying put for two rounds is helping keep buyers interested and active – and we'll be watching out for what might be announced in the Autumn Statement.  

The Key to Making a Sale  

One of the major changes we have seen is sellers who are showing they're ready to be realistic when it comes to pricing their houses. That doesn’t mean selling on the cheap, or falling prices. It simply means avoiding the temptation to overprice and hope someone will still put in an offer. The market is showing us that now is not the time to take that gamble. Instead as sellers are starting with prices which are seen as realistic by buyers this is already leading to a steadier and more sustainable market.  

Mortgage Rates and Affordability: What Policies Are Doing 

The fact that base rates held in the last two rounds is definitely giving buyers more confidence, and we may get more good news in the Autumn Statement. With inflation already falling to half the rate seen recently this also points to much more stable, and possibly even falling, interest rates. In every sense lower inflation and stable to falling mortgage rates gives the whole market a much more positive foundation.  

Looking ahead to 2024 

With inflation forecast to continue falling, and with interest rates holding steady or possibly falling next year, we are optimistic about the state of the market in the year ahead. Despite the gloomy predictions for this year, and amidst some real economic pressures, things have actually held remarkably steady. With a much more positive outlook for the year ahead we are expecting a steady, sustainable and dare we say orderly market for 2024 – one with sellers pricing realistically, buyers who are increasingly confident about mortgage rates and affordability, and a return to a healthy market for all.  

In a Nutshell: A Market Improving Through Change 

It is clear that after the unreal situation we all saw during the pandemic, followed closely by chaos of late 2022 the UK housing market is settling down to a much more normal rhythm. With the help of long-established estate agents who have seen lots of different markets come and go, sellers and buyers are figuring things out. We're keeping an eye on what policies and the world do next, but right now, it looks like the housing market might not be as scary as the headlines want you to believe. 

If you’re thinking about putting your property on the market right now, we’re the experts with an in-depth local knowledge of the Newcastle Under Lyme area. Get in touch to find out how we can help you sell your house.