UK housing prices not predicted to stop falling until 2025

Following the coronavirus pandemic, Brexit, and the ongoing economic crisis, the housing market has been left in turmoil. Even as things have started to recover with mortgage interest rates stabilising, some of Britain’s biggest lenders have predicted that house prices won’t stop falling until 2025. This makes it a good time for those looking to buy, but potentially a more challenging time for homeowners wanting to sell. If you’re a property buyer in the Newcastle area, looking for quick conveyancing in Whitley Bay, Toomey Legal can help. 


Predictions from the banks 

Lloyds Banking Group is Britain’s biggest mortgage provider, owning both Halifax and the Bank of Scotland. Based on their findings, they have predicted that by the end of 2023 house prices will have dropped by 5% throughout the year and are likely to fall by an additional 2.4% next year. The most recent forecasts are suggesting there will be an 11% drop in house prices from their peak last year. A peak that was caused by people rushing to buy larger houses after the pandemic.  

They’re not the only ones who have predictions for the housing market, Santander has forecasted an even bigger decrease for house prices for 2023 at approximately 7% by the end of a year, followed by a further 2% drop in 2024. Despite this difference, there is a general consensus between both lenders that 2025 would be when the first signs of growth would begin to happen. Lloyds are estimating a 2.3% increase in house prices in 2025 whereas Santander have predicted it to be slightly lower at 2%.  

You can find out more information about property predictions and mortgage rates here 


What does this mean for buyers? 

If house prices continue to fall over the next year, it could lead to a bigger demand for buyers who are looking to secure a house for the best price possible. However, there is also a concern of there being more buyers than there are properties as those who have considered selling their home, may attempt to wait to ensure they get the highest price for it during the sale. But for some this could present an opportunity.  

As mortgage rates soared post-pandemic, many homeowners have been looking to downsize to make their mortgage payments more affordable. Therefore, with the drop in house prices and more desirable properties becoming available due to people wanting to downsize, there are some great deals to be had for house buyers currently.


How can Toomey Legal help?

Toomey Legal are specialist residential and commercial property conveyancers operating throughout the North East. Our team have invaluable local insight, which means we can offer buyers a highly efficient and professional service. We provide fixed fee conveyancing in Cramlington and other Newcastle locations, so our clients know exactly what they will be paying for their conveyancing right from the beginning, with no unexpected or hidden charges.  

If you’re looking for local conveyancing quotes in Cramlington, be sure to go through our website to get a competitive price from our dedicated property experts. Additionally, we understand buying or selling a property can involve a lot of steps and be a stressful time. So, if you have any questions or queries, please don’t hesitate to contact us