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Antony Antoniou – Luxury Property Expert

House Price Decline Expected to Extend into 2024, Warns Halifax

House Price Decline Expected to Extend into 2024 Warns Halifax

1: Ongoing Decline in House Prices

As the property market grapples with uncertainty, the Halifax has issued a warning signal that house prices are poised to continue their downward trajectory into 2024. While the anticipated decline is expected to be gradual rather than abrupt, the unsettling trend is projected to persist beyond the holiday season.

2: Director’s Caution

Kim Kinnaird, the Director of Halifax Mortgages, sounded the alarm alongside the release of the company’s latest monthly house price index. The data unveiled a 0.3% decrease in average house prices during July, marking the fourth consecutive monthly drop. The combined impact of these declines has resulted in a 2.4% annual decrease in property prices. This slight moderation from June’s 2.6% decline places the typical UK home value at £285,044, a notable dip from its peak of £293,992 in August of the preceding year.

3: Steady Decline Amidst Economic Challenges

Kinnaird emphasizes the steady nature of this decline, pointing out that over the past six months, prices have demonstrated minimal fluctuations. The average property value has remained close to £285,044, a marginal change from £285,660 in February. Additionally, she highlights the deceleration in the yearly decline, which eased slightly to 2.4% in July, showcasing the housing market’s resilience even in the face of challenging economic conditions.

4: First-Time Buyer Resilience and Buy-to-Let Challenges

Interestingly, Kinnaird underscores the resilience of first-time buyer activity in the market. Despite prevailing pressures, some first-time buyers are opting for smaller homes to offset the impact of rising borrowing costs. In contrast, the buy-to-let sector is grappling with a series of challenges, including elevated interest rates and the looming prospect of rental market reforms. The potential consequences of landlords exiting the market and its potential impact on property supply remain uncertain.

5: Market’s Fate Tied to Economic Performance

According to Kinnaird, the trajectory of the UK housing market is intrinsically linked to the broader performance of the economy. While factors like robust wage growth, hovering around 7.0% annually, provide support, the rise in unemployment could temper these positives. Nevertheless, the likelihood of unemployment reaching levels that trigger a severe downturn in market conditions remains low.

6: Economic Factors and Borrowing Costs

Kinnaird acknowledges the influence of the Bank of England’s Base Rate increases and the recent inflation report for June. The latter report tempered expectations of further rate hikes. While borrowing costs have shown signs of stabilization or even reduction, they remain notably higher than the levels observed over the past decade. This persistent affordability challenge is projected to continue restricting market activity, contributing to an ongoing decline in house prices throughout the upcoming year.

7: A Measured Decline Ahead

Based on the prevailing economic assumptions, Halifax envisions a gradual rather than an abrupt decline in house prices. While this forecast may not align with the expectations of homeowners accustomed to historically lower borrowing costs, it underscores the importance of prospective buyers and sellers remaining vigilant and well-informed amidst these evolving market dynamics. As the property market navigates these uncertain waters, informed decisions will be crucial for individuals looking to navigate the evolving landscape.


As the property market continues to experience fluctuations and challenges, the Halifax’s warning of an extended house price decline into 2024 serves as a crucial insight for both buyers and sellers. The anticipated gradual decrease in house prices underscores the need for a cautious approach in navigating the evolving market dynamics. Here are the key takeaways to consider:

– **Steady Decline:** The housing market’s gradual decline, as highlighted by the Halifax, reflects its resilience even in the face of economic headwinds.

– **First-Time Buyer Resilience:** Despite the challenges, first-time buyer activity remains robust, with some opting for smaller homes to offset rising borrowing costs.

– **Buy-to-Let Sector Pressures:** The buy-to-let sector faces challenges such as elevated interest rates and potential rental market reforms, impacting landlords’ business models.

– **Economic Linkage:** The fate of the housing market is intricately linked to the broader economic performance, with factors like wage growth and unemployment playing a significant role.

– **Borrowing Costs:** While borrowing costs have shown signs of stabilization, they remain higher than the levels of the past decade, affecting affordability and market activity.

– **Informed Decision-Making:** In these uncertain times, informed decision-making is paramount for individuals looking to buy or sell property, ensuring they navigate the shifting landscape wisely.

The property market’s journey into 2024 requires a strategic and informed approach, with an understanding of the interconnected factors shaping its trajectory. As prospective buyers and sellers continue to engage in this evolving landscape, staying informed and adaptable will be key to achieving successful outcomes in the ever-changing world of real estate.

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