Drop in average UK house prices predicted for next year

October 10, 2023 by Alan

House Prices

The latest research into the housing market in the UK is predicting that the average price of a house could fall by as much as £50,000 during next year, which has the potential to open it up to more first-time homebuyers.

This research was by the Confused.com financial services comparison site. Its mortgage professionals studied existing data for the market and determined that the average price for the last quarter of this year has fallen considerably in comparison with that of the third quarter. At that time, it stood at £265,706, whereas now it is £246,575.

The new research published works on the principal that the average price will continue to drop throughout next year. It predicts that, by the time the final quarter of the year rolls around, the price will stand at £195,652. That is not the only potentially positive piece of news for those seeking to buy their first home though.

Deposits are also a major issue for many first-time homebuyers, but Confused.com is predicting that they will be more affordable next year too. The current average deposit is 10% of the overall property price, which leaves it at £24,658 compared with £26,571 in 2023.

However, by the final quarter of next year, Confused.com is forecasting that it will have come down to just £19,565.

If these figures prove to be correct, those with CeMAP mortgage advisor training could see a rise in the number of first-time homebuyers they can assist in 2024.