top of page

Understanding the Dynamics of House Prices Amidst Economic Uncertainty

Writer's picture: Donna StonelakeDonna Stonelake


Cwmbran Estate Agent
Cwmbran property sold within seven days


Understanding the Dynamics of House Prices Amidst Economic Uncertainty

In February, house prices witnessed a 0.7% growth, contributing to an annual increase of 1.2%, marking a positive shift since January 2023. This surge can be attributed to heightened demand at the onset of the year, stimulating market activity.


However, the economic landscape remains ambiguous, with conflicting indicators clouding the near-term outlook. The Bank of England (BoE) grapples with balancing inflationary pressures against sluggish economic growth. The UK's descent into a technical recession in late 2023 juxtaposed with persistent wage growth outpacing inflation, as reported by the ONS, further complicates the scenario. Consequently, projections for the first base rate cut have been postponed, with Oxford Economics now eyeing June for the initial adjustment, followed by two subsequent cuts anticipated later in 2024.


The prevailing economic uncertainty, coupled with an uptick in swap rates, has prompted mortgage lenders to exercise caution. Many have revised their rates upwards after substantial reductions earlier in the year, anticipating swift base rate adjustments. Delays in rate cuts are poised to prolong higher mortgage rates, moderating demand growth and alleviating upward pressure on housing prices.


Despite these challenges, buyers have capitalised on previous mortgage rate declines, driving market activity. Mortgage approvals surged to 55,200 in January, marking the highest figure in 15 months, consequently bolstering sales agreements, which soared by 27% in February compared to the same period last year, and even surpassed the 2017-19 average by 13%, as per TwentyCI.


However, the surge in early activity indicators has yet to translate into completed transactions, with January witnessing 68,090 completed transactions, a figure 15% below the 2017-19 average. Nonetheless, this is expected to evolve in the upcoming months, buoyed by the heightened number of sales agreements in the initial months of 2024.

Furthermore, regional disparities persist in house price movements, as depicted by lagged Land Registry data. Notably, affordability constraints have led to price falls in at least half of the local authorities across all regions, particularly impacting the North and Midlands, where 65% witnessed price declines. Affordability pressures remain more pronounced in the South, with 92% of local authorities experiencing annual falls.



Additionally, annual rental growth across the UK moderated to 7.8% in January, down from 8.2% in December. Scotland stands as the sole region with annual growth exceeding 10%, owing to rent control policies curbing supply and exerting upward pressure on newly agreed rents. Other northern regions, including the North East and North West, also witnessed above-average growth rates, highlighting regional nuances in the rental market.

14 views0 comments

Recent Posts

See All

Comments


Commenting has been turned off.
donna Stonelake estate agents Cardiff, www.donnastonelakeestateagents.co.uk, independent estate agent in Newport UK, bespoke estate agent services Blackwood, Cardiff property valuations donna Stonelake, Newport home sales by donna Stonelake, Cwmbran estate agent open 7 days a week, Caerphilly personalized real estate services, Newbridge property listings donna Stonelake estate agents, Aberbargoed bespoke home selling, Machen real estate agent donna Stonelake, Estate agents available 8am to 8pm in Cardiff, donna Stonelake estate agents property valuations Newport, Custom real estate services Blackwood, donna Stonelake Cwmbran house sales, Personal estate agent Caerphilly, Home sales specialist Newbridge, Aberbargoed local estate agent donna Stonelake, Machen personalized property services, donna Stonelake estate agents home viewings Cardiff, Newport bespoke property listings, Blackwood estate agents with extended hours, Cwmbran real estate valuations donna Stonelake, Sell your home in Caerphilly with donna Stonelake, Newbridge real estate consultations, Aberbargoed property market expert donna Stonelake, Machen home valuation services, Cardiff estate agent with weekend availability, Newport property sales specialist donna Stonelake, Estate agent services in Blackwood, donna Stonelake Cwmbran personalized estate agency, Home selling services in Caerphilly, Newbridge bespoke estate agents, Property valuations in Aberbargoed, Machen house sales donna Stonelake estate agents, Cardiff real estate agent available 7 days, Newport independent estate agent donna Stonelake, Blackwood property sales and valuations, Cwmbran bespoke real estate services, Caerphilly home valuations by donna Stonelake, Estate agent with extended hours Newbridge, Aberbargoed bespoke property sales, Machen estate agent with personal touch, donna Stonelake Cardiff property viewings, Newport homes for sale donna Stonelake estate agents, Blackwood real estate agent with flexible hours, Cwmbran personalized property sales, Caerphilly estate agent open Monday to Sunday, Newbridge property sales donna Stonelake, Aberbargoed real estate services 8am to 8pm, Machen independent estate agents, donna Stonelake estate agents Cardiff personalized service, Estate agent in Newport with weekend hours, Blackwood property market donna Stonelake, Cwmbran home selling expert, Caerphilly bespoke estate agency, Newbridge estate agent donna Stonelake, Aberbargoed home valuation and sales, Machen estate agents with personal approach, Cardiff property sales service donna Stonelake, Newport real estate consultancy, Blackwood bespoke home valuations, Cwmbran estate agent donna Stonelake, Caerphilly property listings and sales, Personalized real estate agent Newbridge, Aberbargoed home sales specialist, Machen bespoke estate agent services, donna Stonelake estate agents in Cardiff with extended services, Estate agents in Newport available every day, Home valuations in Blackwood by donna Stonelake, Cwmbran real estate selling services, Caerphilly independent estate agency, Newbridge bespoke property services, Aberbargoed estate agents open late, Machen property sales donna Stonelake estate agents, Cardiff bespoke property management donna Stonelake, Newport personalized real estate listings, Blackwood property experts donna Stonelake estate agents, Cwmbran estate agent with custom solutions, Caerphilly residential sales specialist donna Stonelake, Newbridge innovative estate agency services, Aberbargoed tailored real estate advice, Machen local property expert donna Stonelake, Full-service estate agency Cardiff donna Stonelake, Newport property valuation experts, Blackwood home buying services donna Stonelake, Cwmbran personal property consultants, Caerphilly estate agents with integrity, Newbridge premium property sales donna Stonelake, Aberbargoed 7-day estate agents, Machen dedicated property professionals, Donna Stonelake Cardiff comprehensive real estate services, Estate agent customer care Newport, Blackwood high-quality property listings donna Stonelake, Cwmbran estate agents with a difference, Caerphilly home selling made easy, Newbridge estate agent with bespoke approach, Aberbargoed 8am to 8pm real estate services, Machen property valuation and advice donna Stonelake, Cardiff real estate agents with personal touch, Newport custom real estate marketing, Blackwood flexible viewing schedules donna Stonelake, Cwmbran property sales excellence, Caerphilly innovative home sales strategies, Newbridge local market knowledge donna Stonelake, Aberbargoed estate agent with bespoke listings, Machen premium real estate experience, Cardiff property sales and consultation donna Stonelake, Newport bespoke real estate portfolio, Blackwood personalized home selling plan, Cwmbran dedicated estate agent service, Caerphilly property sales with a personal touch, Newbridge customer-focused real estate agency, Aberbargoed quality property listings, Machen estate agents for tailored services, Cardiff residential property expertise donna Stonelake, Newport estate agent with unique offerings, Blackwood property sale personalization, Cwmbran home valuation experts donna Stonelake, Caerphilly real estate agents open all week, Newbridge property consultations with a difference, Aberbargoed personalized estate services, Machen real estate agency with a personal touch, Cardiff unique homes for sale donna Stonelake, Newport full-service real estate solutions, Blackwood bespoke property marketing strategies, Cwmbran real estate professionals with a difference, Caerphilly seamless home sales process, Newbridge estate agents for personalized service, Aberbargoed property specialists available 7 days, Machen comprehensive estate agent services, Cardiff innovative property sales donna Stonelake, Newport real estate with bespoke valuations, Blackwood custom real estate services, Cwmbran estate agent with extensive hours, Caerphilly property sales specialists, Newbridge bespoke real estate marketing, Aberbargoed tailored home valuation services, Machen customer-centric real estate agency, Cardiff quality estate agents donna Stonelake, Newport property sales with a difference, Blackwood personal estate agent experience, Cwmbran home sales and valuations, Caerphilly dedicated property services, Newbridge innovative estate agents, Aberbargoed real estate with flexible viewings, Machen personalized property sales strategy, Cardiff estate agent with weekend availability, Newport custom property solutions, Blackwood estate agents with a client focus, Cwmbran personalized estate agent consultations, Caerphilly home sales experts, Newbridge property sales services with a personal touch, Aberbargoed real estate agents with extended services, Machen quality home selling experience, Cardiff bespoke real estate advice donna Stonelake, Newport innovative property listings, Blackwood personalized property viewing experience, Cwmbran estate agent with client-focused approach, Caerphilly dedicated to seamless property sales, Newbridge real estate services tailored to you, Aberbargoed property experts with personal service, Machen estate agent committed to excellence, Cardiff property consultations available every day, Newport real estate agency with custom offerings, Blackwood home selling services with a bespoke approach, Cwmbran property valuation and sales with a difference, Caerphilly estate agents dedicated to clients, Newbridge real estate agency with a unique touch, Aberbargoed personalized property management, Machen estate agents focused on customer satisfaction,
Donna Stonelake Estate Agents Ltd 14999612
Cookie policy | Terms & Conditions | Privacy Policy
© Donna Stonelake Estate Agents 2024
Donna Stonelake Estate Agent Pontypool
bottom of page