Zoopla predictions of a 2% average house price drop this year

 A report Zoopla provides valuable insights into the dynamics of the UK housing market, particularly in 2023 and the projections for 2024. Here’s a breakdown of the key points:

  1. Overall Market Trends:
    • Zoopla predicts a 2% average house price drop for the year, with high-value regions in the South of England expected to be most affected.
    • High mortgage rates are cited as a significant factor limiting buying power, particularly in these high-value regions, contributing to further home value drops.
  2. Performance in 2023:
    • Despite an overall drop in house prices across the UK, six in 10 homeowners saw the value of their homes either remain static or increase by at least 1%.
    • Homeowners who saw their property value increase in 2023 experienced an average increase of £7,800, which is significantly lower compared to the gains seen in 2022.
  3. Regional Variations:
    • The North West of England had the highest proportion of homes registering larger value increases of 5% or more, with an average gain of £13,200.
    • Scotland followed closely, with just over 400,000 homes (16%) increasing in value by 5% or more.
    • Property type also played a role, with terraced homes in the North West most likely to register more than 5% value increases (19%).
  4. Declines in Home Values:
    • Despite many homeowners experiencing value increases, four in 10 UK homes fell in value by at least 1%.
    • Nearly a third of homes fell in value by over 5% or more, a significant increase compared to the previous year.
    • Reductions in home value were particularly pronounced in the South of England, with 18% of homeowners in the East of England and the South East registering decreases of 5% or more.
  5. Expert Commentary:
    • Izabella Lubowiecka, Senior Property Researcher at Zoopla, emphasized that while national indices suggested modest house price falls, Zoopla’s property-level tracking revealed that most homes saw either unchanged or slightly higher values. Value reductions were concentrated in southern England, while modest gains were seen in more affordable housing markets.

Overall, the report highlights the complex interplay of factors influencing property values across different regions of the UK, with affordability, mortgage rates, and property type all playing significant roles.



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