Proactive Investors - House prices are predicted to fall by as much as 4% in 2024, after a resilient 2023, according to a forecast from lender Halifax.
“Overall, with the combination of cost of living pressures and interest rate levels that are still much higher than even two years ago, we will likely see continued mild downward pressure on house prices,” said Kim Kinnaird, director, Halifax Mortgages.
Halifax, which is part of Lloyds Banking Group PLC (LON:LLOY), the largest lender in the UK, expects prices to fall between 2% and 4%.
But it predicts a partial recovery in market confidence and transaction volumes in 2024 as interest rates ease and affordability improves.
As with recent years, forecast uncertainty remains high given the current economic environment, it added.
Kinnaird noted prices held up better than expected in 2023, falling just 1.0%.
"This resilience – which owes more to the shortage of available properties for sale than strength of demand among buyers – means average house prices end the year just 3% down on August 2022’s peak (£293,025) but £44,000 above pre-pandemic levels," she said.