House Prices Set to Fall Further in 2024 Before Recovery in 2025 as Rates Decline
• House prices fell 1.8% in 2023 and are forecast to fall up to 4% in 2024 before recovering in 2025 • Mortgage rates are falling as the Bank of England is expected to cut interest rates in 2024, improving affordability • Pent-up demand from would-be buyers unable to purchase in 2023 may drive price growth later in 2024 • London and the South East will see the steepest price declines in 2024 of 3.5-4% • Healthy job market and lender forbearance means forced sales have been avoided, supporting prices