UK Home Sales Rebound On The Cards?

Home sales in the UK will begin to rebound in Quarter 1 of 2024 after having “fallen off a cliff” this year, predicts one of the world’s largest independent financial advisory and asset management organisations, reports Abode2.

The assessment from deVere Group comes as UK property sales and, in turn, prices are falling at the fastest rate in a decade, according to several sources.

UK home sales have gone AWOL this year with stubbornly high mortgage rates having had a stranglehold on the housing market as the Bank of England has been raising interest rates at a clip to try and bring down red-hot inflation.

Inflation peaked at 11.1% last October and has since eased to 6.8% in July – but this is still more than three times the Bank’s 2% target. As such, UK interest rates are expected to peak at 5.5% next month, which will further weaken demand in the housing market.

Towards the end of the year, however industry expectations are, that the Bank of England, concerned about the impact of higher borrowing costs on the economy and to avoid a prolonged recession, will move to slow the interest rate increment.

This is likely to unleash some of the pent-up demand, with home sales beginning to rebound in Quarter 1 of next year and an uplift in attractive real estate investments entering the market.

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