UK House Prices have been FALLING for over a year, yet many people (often those with vested interests in the housing market) are still hopeful that a UK house price CRASH can be avoided as they believe the government will step in if house prices fall too far.
This started during the global financial crisis when governments and central banks stepped in to bail out the markets instead of letting them take their natural course. Recessions and housing market corrections are supposed to be a normal function of a capitalist market cycle, however, politicians have decided this is no longer acceptable and choose to intervene instead.
Even if the government does try to bail out the housing market, I firmly believe it won’t be enough to prevent a full blown housing market CRASH!
The UK housing market is already down over 5% from its peak last year and the economic outlook suggests things are likely to get even worse in 2024 and beyond.
House prices are very likely to go down further next year and any house price forecasts that suggest otherwise should be treated with extreme caution.
I have been making regular UK house price predictions over the past 12 months and so far the UK property market has yet to prove me wrong. It might be taking slightly longer than I had predicted, but I believe the eventual destination remains the same.
What do you think – how much will house prices fall in 2024? Let us know in the comments below!
45 Comments
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The government wants to land the crash on poor people by convincing them to buy at the top prices. With top interest.
This is not an isolated case, a house here [Cumbria] has been on the market for 4 months. It has just been reduced by 15% in one hit & the asking price is now just 8% more than when it sold in 2004 – not a typo. Of the 4 properties just come though on my Zoopla account 3 are reduced – that's 75%. Anybody who thinks that the UK [Western world.] house price collapse is going to be less than 70% is living in cloud cuckoo land. I believe house prices are falling there as well.
I did note they had quietly abolished the S21 requirements,plainly to try and prop up the market.
However the 13% drop from the peak,plus increasing redundancies,mean those BTL on interest only due to remortgage, or those at risk of job losses in terms of tennants,will still be looking to economise and/or cut their losses. that momentum is still increasing sharply.
Same clickbait shit everyday?
The help to buy scheme is only for 250k house outside Ldn. If you buy outside for 255k you get nothing from the scheme as your exceeded the price limit.
This guy really wants that house…
Very few properties reduced more than 5% in East Sussex. It seems people have absorbed the change in mortgage rates. They may have given up a 2nd car or that 2nd holiday abroad but they’ve done it. My brothers partner works in mortgages and she has been very busy of late.
I'm in Northern Ireland and bought my new build house for 250k, 18 years ago in the last boom
It has never recovered back to that price, as so much houses in NI peak from that time
I'm wondering where it will end up next
Prices are not falling where I live (East Sussex Coastal) in fact they are coming onto the market higher than the peak! Granted many are not selling.
The whole system is broken ! it's built on greed not business !
the UK economy isn't looking good ? It's been bad for 7 years ! our GDP hadn't grown a single percent 😂
Im only saying today on X … In the top 2 roads ( side by Side ) where i would like to buy , there is now 11 property 4 sale .. 7 with one agent who set the price trend … Not one property sold while many are having over 20 viewings … Not one has gone under offer … ( Somerset ) county town
In the same way the Tories will support house builders not home owners !
Nonsense, a price correction, not a crash. House shortages, rental market strong, the housing market will be slower, it will not crash
Can't see a drop of more than 15 per cent. A crash would wreck the U.K. economy. More people than ever are property savvy. They will not give up their homes. After all, you cannot lose over time. Too many well-publicised failures in crypto and stocks. People losing their homes by the tens of thousands as in 1992 too politically unacceptable today, like smoking in public. Covid set the trend: State aid in the U.K. and even the U.S. to keep businesses etc going. People expect the government to help. After all, they pay the taxes. Look up all the foreigners buying property in the UK. Middle East and immigrants from Hong Kong. They know on which side their bread is buttered.
Because so many people overpaid for homes even while loan rates were low, I believe there will be a housing catastrophe because these people are in debt. If housing costs continue to drop and, for whatever reason, they can no longer afford the property and it goes into foreclosure, they have no equity since, even if they try to sell, they will not make any money. I believe that many individuals will experience this, especially given the impending mass layoffs and rapidly rising living expenses.
Two houses I've seen on right move. One went up for 240k is now 185k and another was 220k now on for 179k. Recently I've been seeing a 15-30k reductions on houses recently. I'm still holding off. I think there will be more reductions going into next year. As a buyer this is good in my case, and when more mortgages have passed the fixed rate I'm hoping more will be wanting to sell cos they can't afford it anymore. Sounds selfish and it Is really but house prices have needed to come down for a long time.
AMEN
si why oh why are they destroying country side and building everywhere???
Agree 2007,8,9 we are carrying that today, there should of been a crash then, NOW we need a crash get to the bottom and reevaluate, (it will be painfull) and grow the country again
I’m a cash buyer and I just low ball everyone
Eventually one buyer will be desperate enough then I can renovate and sell in a few years
Darren, I'm just looking at houses and I notice with some of them the "offers in excess of" displayed. How true is that honestly, or is just more bs.
It is difficult to make exact projections for the housing market as it is still unclear how quickly or to what degree the Federal Reserve will reduce inflation and borrowing costs without having a substantial negative impact on demand from consumers for anything from houses to cars.
Interest rates have to stay high to support the British Pound as the US Dollar gets stronger.
8:15 so, printing more money to keep prices high rather than build more houses.
This country is one big swindle, don't buy into it.
If they are looking at another Help to Sell / Help to Buy to try and keep the fire alive then I would not be surprised if the government allowed private pensions (SIPP) to invest in residential property to help create demand in the housing market.
Try it without the naff ‘guys’
In east anglia I have put offers in above asking price and didn't get a look in. People offering considerable over the asking price. No estate agents in our area have reduced their prices certainly for anything under £200,000.
Properties in my area are extortionate. They are being put on the market, not selling and so are withdrawn from the market.
"The government have already announced an extension of the mortgage guarantee scheme" – socialist underwriting of the housing market with tax payers money. F the Tories, vote Reform
The government has really made things difficult for citizens, everyone needs more than their salary to be financially stable, since I consistently make $23000 of cryptocurrency investment profit every 29 business days, I no longer depend on government salaries to survive now I have time for my family and the life ahead of me
If the Tories cannot offer tax cuts to win an election, then that is a clear sign just how bad the government finances are.
Thanks for the great videos . 🙂 How can I find out the house price % reduction for any particular suburb over the last few years? Looking at purchasing a property and can see what they paid in in Jan 2022 and they are asking more now than what they paid then and I can't believe prices wouldn't be a lot lower as Jan 2022 must be near top of market pricing?…a realistic value would be at least 5-10% lower now?
Inflation has a greater impact on people's cost of living than a crashing stock or housing market,
resulting in an immediate and tangible effect. This explains the current high level of negative market
sentiment, and our need for assistance in surviving this challenging economy. The financial markets have
underperformed due to fears of inflation, causing stock and bond prices to plummet. Despite sounding basic,
consulting a financial advisor has enabled me to outperform the market and achieve a profit of $850,000
since June 2022, making it the ideal approach to enter the financial markets today.
Who's seen Fight Club with Brad Pitt? That's what we need. 🙂
Yeh but they’ll go down about thru pence halfpenny then go back up. Same old shite!
Why does the government feel it’s their job to prop up house prices!? Who other than the banks benefit?
The market has been pretty bad until today it decided to go up. Everyone was practically crying then. He continued to dive. That's what you get when you feel like you can navigate the process on your own. Many thanks to Alvarez Micheal. I am not worried about how bad the market is because my assets are insured due to your advice and I continue to receive my profits.
Wow you put this on just one week before they announced an INCREASE in house prices by 1% last month.
The fall is temporary and may already have stopped.
You really are not understanding all the factors at play here and are basing your (now shown to be incorrect) prediction on a selected few factors.
The government does not need to step in.
Here is the reality –
Inflation is falling and will keep falling as the rises of the past year drop out of the figures.
As inflation drops and we near a general election, interest rates will drop back a bit to stimulate the economy and the (misguided) policy of trying to tackle inflation with interest rates stops.
Demand picks back up but supply has stalled so prices remain firm or rise.
There cannot be a crash as all the downward factors are temporary. People will never sell a house for 20% less if they think the price will go back up in a year. All that will happen is the market stagnates for a while.
You say "I have been making regular UK house price predictions over the past 12 months and so far the UK property market has yet to prove me wrong." I have seen a few in the past and not seen one that has been correct! You have been saying we will have a crash for two years now and we have not and still will not.
Are'nt you the guy who is spending £10k a year on rent waiting for the prices to fall? Ha! So £30k down already.
The wisest thought that is in everyone's minds today is to invest in different income flows that do not depend on the government, especially with the current economic crisis around the world. This is still a good time to invest in gold, silver and digital currencies (BTC, ETH…. stock,silver and gold)
BBC news lol
6:22 Bribed. The correct word is bribed.
A housing crash seems likely as many individuals who purchased homes above asking price are at risk, lacking equity if housing prices decline. Foreclosure becomes a concern, particularly with massive potential layoffs and a rapidly rising cost of living.