← Back to News
House prices set to rise in 2024 – claim
House prices are on track to defy gloomy expectations of a double-digit drop this year.
The latest data from Halifax shows that property prices unexpectedly increased in November, the second month in a row, as lower mortgage rates boosted buyer confidence amid a shortage of sellers, and that trend looks set to continue as we head in 2024.
Fresh data from GoCompare suggests that instead of falling in 2024, property prices are set to rise as interest rates peak and stabilise.
The figures, shared with the Daily Express, reveal that GoCompare calculates house prices should rise by an average of 5.92% by September 2024, thanks to higher wages and falling mortgage rates.
If accurate, this would lift the average price from today’s £291,385 to £308,635. That is an increase of £17,250, making homeowners feel wealthier.
“So long as borrowing remains affordable, then owners won’t be forced to sell, while new buyers can still afford to get on the property ladder,” wrote the newspaper’s personal finance editor, Harvey Jones.
The journalist highlights that in practice, mortgage rates are already falling as lenders gamble that the Bank of England will not increase base rate from today’s 5.25%, and will start cutting next year instead.
“If rates continue to slide, house prices could rise by a lot more than 5.92%”, Jones said.
“GoCompare calculates that if mortgage rates fall by a full percentage point to 4.3% then house prices could rise by a thumping 10.5% by next September,” he continued. “This would lift the average house price to £321,968. That’s an increase of £30,583 on today’s levels.”
“It’s hard to imagine house prices rising by £30,000, given current worries. Yet a year ago a property crash looked inevitable, and it never happened,” he added. “I’m expecting another positive surprise next year. Fingers crossed.”
