Different factors raise UK house prices over the second half of the year. For example, the marketing demand for housing in the UK is increasing because of the high population explosion. This is also increased by the low interest rates and lowering of household savings. Along with this, the living expenses among the people in the UK are also growing, and so are the rising house prices. Moreover, high competition for limited housing stock also raises house prices in the UK. Similarly, the government policies in the UK based on housing markets provide low incidents to the people. The UK’s national government is also investing in housing infrastructure development. Consequently, the prices of housing in the UK are increasing directly.
In the UK, house prices will increase by the end of 2024 with a 2% hike. In this consideration, more individuals in the UK are trying to sell their homes. The number of houses sold in the UK is higher than the number of clients. This kind of scenario has led to the rise of housing and real estate property prices in the UK. Based on the past 6 years record, the real estate price in the UK has risen by 16% in 2024. Consequently, buyers in the UK pay 96.8% of the asking price forcibly. Therefore, the mean value of houses in the UK is 16,600 Euros, which is quite complicated for buyers.
On the other hand, supply constraints and housing supply are relatively low compared to the demand in the UK. This causes the rise of housing prices within the second half of the year. In this consideration, determinants such as planning regulations and construction delays also cause a surge in housing properties in the UK. The present economic condition in the UK pushes housing property prices upwards, increasing competition among buyers. The Russia-Ukraine War, the rise of fuel prices, inflation, and unemployment triggers economic issues in the UK. These raise the price of houses in the UK directly and dramatically. Besides this, the interest rates in the UK affect the affordability of mortgage rates. As a result, the imbalance in the supply and demand of housing properties in the UK caused a price rise steadily. Along with this, the price of housing in the UK fluctuates across different places and cities. For example, metro places and cities in the UK will have high and peak rises in housing properties dynamically. Along with this, local economic conditions, demographic shifts, and employment opportunities have changed the housing prices in the UK. In addition, immigration rules and global economic trends also impact housing prices.
Most of the reports from the Bank of England state that mortgage and housing prices will increase and will remain unchanged till the last month of 2024. Moreover, the executive director of Zoopla, Richard Donnell, mentioned that housing marketing is rising after a stone-cold 2023. The rise in housing and real estate property prices has reduced the motivation and confidence of buyers and sellers simultaneously. The main issue is the increased proportion of asking prices of housing properties among the sellers and buyers. This resulted in the scarcity of real estate and mortgage clients in the UK directly. Similarly, Zoopla stated that housing prices in the UK will rise continuously in the upcoming periods. In this respect, the national government has declared some help to tackle the issues of the rise of housing prices for long-term advantage for the buyers and clients.
Most of the Banks in the UK will reduce the rising interest base rate by 5.25%, and it will increase housing prices. The former president of the National Association of Estate Agents stated that recent inflation had caused a 2% hike in the cost price of housing properties in the UK. In addition, the higher mortgage expenses in the UK are also a prime reason for the maximization of housing properties. The average house price in the UK is 265,600 Euros in the first half of 2024. In this prominence, Zoopla has stated that more sellers will increase buyers and it will streamline the pricing issues of houses in the UK.
Most of the prices of housing and real estate properties in the UK are rising monthly in 2024. This kind of phenomenon is quite negative for the economic prosperity of the UK. So, the UK’s national government needs to provide some policies and strategies to cope with the rise in housing prices. This will provide social and humanitarian aid to the people in the mainstream society in the UK. From this perspective, Wales, Northern Ireland, Scotland, and England must be united in the marketing of housing and real estate properties. This will suddenly reduce the price hike in 2024. So, to lower housing prices in the UK, the national government must encourage public sector housing, brownfield development, and construction and infrastructure development. Along with this, the UK’s national government must reduce property taxes and tariffs. In addition, monitoring of FDI is required to be involved. Moreover, public-private partnerships for housing development in the UK will also reduce the prices.