New homes

Property market forecast: Good news for sellers

March 19th 2024
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It's a blooming springtime for sellers, with UK house prices seeing a 1.5% increase this March, their biggest rise in 10 months. This is due to an increase in buyer demand following a slightly flatter market in 2023.

According to the Office of Budget Responsibility (OBR), this positive trend is set to continue. The OBR issues a forecast alongside the government's Budget covering predictions for the economy over the next five years. Their forecast can tell us a lot about the position of the housing market and where it's headed.

We've put together the highlights of the OBR's report and what that means for homeowners. 
 

Earlier than expected property market recovery

The OBR predicts residential property transactions to be largely flat during 2024, a change from the previously predicted fall of 7%. It then forecasts that property sales will start to recover to pre-pandemic levels by early 2025, two years earlier than previously predicted.
 

Strong market demand

The OBR's revision indicates a stronger market demand and resilience than was initially anticipated, offering reassurance for sellers holding off their transactions in the hope of a better market. This unexpected U-turn in the forecast could unlock a wave of previously pent-up transactions, as sellers regain confidence in the market and adapt accordingly.
 

Good news for sellers

The prospect of an early sales market recovery is likely to spur homeowners to act sooner rather than later, aiming to capitalize on a market that appears to be finding its footing back. House prices are then expected to grow approximately 2% in 2026 and 3.5% in 2027, mainly due to lower mortgage rate forecasts.

While none of this is guaranteed and is all dependent on broader economic factors and policy decisions, it still bodes well for the future of the housing market and sellers in general.
 

Are you thinking of selling your property? Book a free valuation with us today, or contact your local branch to find out more.‚Äč