UK real estate market: 2023 results and forecasts for 2024
In 2023, the UK real estate market was impacted by global economic factors including rising interest rates, inflation and the energy crisis. House prices fell by an average of 1.5% compared to 2022, although in some regions such as London and the South East the fall was more pronounced.
Demand for homes remained stable, particularly in the rental segment, which saw rents rise by 8% over the year. However, many buyers were put off buying a property due to high mortgage rates, which reached 6% by the end of the year.
Analysts expect a gradual market recovery in 2024. The UK central bank is planning to ease monetary policy, which could lead to lower rates. Regional markets such as Scotland and the north of England remain attractive to investors due to more affordable prices.