Insight: The Housing Market February 2024

Only a month ago, housing market experts were expecting 2024 to be characterised in two halves: the first half would see house price falls, and the second half would see recovery. Interestingly, the data from the first Halifax House Price Index for 2024 already bucks that expectation. Overall, average house prices have increased and significantly so. Other indications are that activity is picking up, and buyer confidence is improving.

However, as always with the housing market, we must dive into the regional picture. When we do this, what we see is that Northern Ireland is putting upward pressure on average house prices while the South East has experienced a fall. This fall in the South East fits expectations.

So, to get a better understanding, read on to learn more about the latest data for the UK and in Kent.

The headline stats and facts

• Average selling price: £291,029 (+1.3% monthly rise, the fourth consecutive monthly rise).
• Property price increases: Annual rate of growth is +2.5% (the highest annual growth since a year ago, and not a fall like recent months).
• Interest rates: 5.25% (unchanged since August 2023).
• Inflation: 3.993% (continuing to edge downwards).
• Kent stats: Kent property currently spends an average of 171 days on the market (up 18% on the same time last year). The number of properties on the market is up 11% on the same time last year. The average selling price in Kent is down slightly on recent months at £427,469.
• RICS net balance score: RICS data shows positivity in the housing market. New instructions are positive for the first time since May 2023, at +1%. New buyer enquiries also improved to -3% (was -13% in November).

What does this mean?

Fundamentally, the data shows the resilience of the housing market. Overall, there are signs of improvement in both prices and house market activity across the country. With relatively high interest rates, with expectations that these may start to drop later in the spring, there is still caution, but it’s likely a trend that will continue. Cheaper mortgage rates are being released, encouraging uncertain buyers to make the move.

The Halifax data, mirrored with data from the Nationwide, shows a more positive start to the year than anticipated. However, we need to retain awareness that interest rates are still elevated compared to recent times, and a lot of the upward price pressure is due to demand exceeding supply. In reality, affordability challenges still exist, and there could be some further falls this year.

What about Kent?

The latest data shows that we need to look beyond UK averages to get a true understanding of what’s going on in different areas. The South East actually experienced a fall in average house prices last month of -2.3%. This correction in property prices has been expected. When we look at the properties that are coming onto the market in Kent, they are predominantly large detached properties. In fact, there are 1% fewer flats on the market than this time last year.

However, it’s not a bleak picture, and there are indications that Kent, along with the rest of the South East, will remain resilient until growth picks back up. For example, average house prices in Kent are very similar to this time last year, and 5% up on 2021.

Your house move

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