House prices have fallen across 80% of the UK this year as higher mortgage rates continue to dampen the demand for new homes, figures reveal.
But could the drop in prices mean that now is a great time for first-time buyers to step on the property ladder?
Zoopla’s latest House Price Index shows that house price falls are now more widespread across the country, with four in five local housing markets registering a decrease.
The figures show that all markets in the south and east of England, and London – which is notorious for high property prices – registered price falls, along with more than half of those in the rest of England and Wales.
But although continued high mortgage rates could be off-putting for some buyers, could it be the perfect time for first-time buyers to bag a bargain on their first home?
Melissa Edwards, Oakwood Property Solicitors’ Head of Property explains:
“We have seen property prices reduce over the course of year – which is great for first time buyers looking to get on the property ladder, even better is that we are slowly seeing interest rates creep back down so it seems as though this could be a really great time for an influx of first time buyers.”
In fact, Zoopla’s figures show that first-time buyers are on track to be the largest buyer group in 2023. This could be down to the lower house prices, but also as a way for tenants to dodge the continued rapid growth in rents.
Karl Knipe, Director of Kings Group said:
“It’s important to take a long-term view when buying a house. Very low single-digit price rises or falls make no difference when buying a home that you will live in for many years – it shouldn’t be relevant.
“The forecasts are showing that 2024 looks like it will be a similar year to 2023, so if you want or need to move and buy your own ‘castle’ – now is the time to do your homework and put yourself in the best position for the new year knowledge wise, financially wise and ability wise.
“This will ensure you’re set up to move quickly if you find a home that suits your needs.”
Zoopla’s predictions for 2024 show that cash buyers will also remain an important buyer group as they account for one in three sales in 2023.
Zoopla explains that this is because many cash buyers have room to be more realistic on price as they are also mortgage-free sellers who have lived in their homes for many years. Their realistic outlook on pricing will also support the number of transactions in 2024.
Meanwhile, upsizers are the group most sensitive to higher mortgage rates as they tend to buy bigger homes which require larger mortgages.
According to Zoopla, the total number of home sales in 2024 will be the same as in 2023 at one million, but this could improve if mortgage rates drop back to 4% over the first half of the year.
Whether you’re a first-time buyer, wanting to find a new home for your family, or looking to sell a property, Oakwood Solicitors can help. Get in touch with one of our legal experts today to ensure your house-buying process is as stress-free as possible.
Further reading
Purchases – Oakwood Property Solicitors
WHAT TO DO NEXT
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