Cheshire Plot Finder

As the increasing cost of living puts more pressure on household finances and rising interest rates impact customers' monthly mortgage payments, there's understandably now more caution among both buyers and sellers - particularly following recent market volatility - which has seen demand soften as people take stock.

Looking ahead to next year, it will clearly be a more challenging economic environment and the housing market will continue to rebalance to reflect these new norms. Though the limited supply of properties for sale will continue to support prices, the pandemic-driven surge in demand has receded, and we're emerging out of more than a decade of record low interest rates.

Unemployment is expected to rise and reach around 5.5%. This is relatively low by historical standards, but will be challenging for many people. While inflation as a whole may be close to or at its peak, household energy bills are likely to rise again, putting more pressure on household budgets.

It is expected that UK house prices will decrease by around 8% next year. To put this into perspective, such a fall would place the average property price back at roughly the level it was in April 2021, reversing only some of the gains made during the pandemic. There is still uncertainty around this forecast, with the trajectory for Base Rate and unemployment levels key to determining any future changes. (Data source: Halifax November 2023).