UK HOUSE PRICES LIKELY TO FALL BY 1% NEXT YEAR

The largest property website in the UK has projected a 1% decrease in average house prices for the upcoming year, citing heightened competition among sellers. Rightmove anticipates a need for sellers to adopt more competitive pricing strategies in 2024, while mortgage rates are expected to stabilize at a persistently 'elevated' level. This forecast marks a shift from the previous year's prediction of a 2% decline in average asking prices for 2023. The property market continues to grapple with increased mortgage costs and an ongoing cost of living crisis. Rightmove, which tracks asking prices rather than actual sale prices, foresees a national average decrease of 1% in asking prices by the end of 2024 as the market gradually returns to "more normal levels" of activity post the pandemic boom. The company reported a 1.3% dip in average asking prices in 2023 compared to the previous year. The proportion of sellers reducing their asking prices rose to 39%, up from 29% in the previous year and 34% in 2019. Rightmove's property expert, Tim Bannister, acknowledged the challenging prospects for some buyers and sellers in the coming year, with an anticipated average price drop of 1%. However, he emphasized that the unexpectedly positive activity in the current year suggests opportunities for sellers to attract buyers with well-calibrated pricing.