MHHG estate agents

The evolving dynamics of the housing market are underscored by the ongoing adjustment to higher mortgage rates. Our latest comprehensive report delves into the multifaceted repercussions of this shift, revealing trends in transactions, pricing, and buyer behavior. Here are key insights from our analysis:

1. Pricing Realism Amidst Growing Supply

Sellers are increasingly aligning with market realities, albeit at the cost of accepting larger discounts from the asking price.

Sales agreed remain resilient, but the market is flooded with more homes for sale compared to recent years, particularly in the 3 and 4+ bed house segments.

The soft adjustment in pricing is expected to continue through 2024, with sellers' realism supporting sales volumes.

2. Buyer Demand and Sales Resilience

Despite weakened demand due to increased mortgage rates, new sales agreed have seen a 15% rise compared to the previous year.

While buyer interest dipped during the summer, a modest rebound in the autumn suggests a growing confidence that mortgage rates may stabilize or decrease in 2024.

Sales are holding up well in various regions, including Scotland and inner London, signaling a buyer's market but with encouraging signs for committed purchasers.

3. Price Trends Across the UK

The average UK house price has dipped by 1.2% in the last 12 months, with notable variations across regions.

Prices are falling in all areas of England and Wales, led by the Eastern region at -2.6%, South East at -2.4%, and London at -2.0%. However, Scotland experiences a 1% increase.

Larger price falls are concentrated in markets that witnessed rapid growth during the pandemic, with declines reaching up to -4% in specific areas.

4. Record High Supply and Negotiating Power

After facing a chronic scarcity during the pandemic, the supply of homes for sale has surged to the highest level in six years, providing buyers with increased choice and negotiating power.

Discounts to the asking price are at a 5-year high, with sellers acknowledging current market conditions and adjusting prices more realistically.

Southern England experiences the largest discounts, with an average of 6.1%, reflecting stretched affordability.

5. Outlook for 2024

The ongoing repricing of housing is anticipated to continue in 2024, with the number of new sales agreed remaining a positive indicator of market activity.

Further reductions in fixed mortgage rates are crucial to reignite buyer interest, as rising earnings alone are not sufficient to counteract the impact of higher rates.

Expectations include a potential decline in the number of homes for sale as sellers reassess strategies in the new year, emphasizing the need for realistic asking prices to attract demand.


In conclusion, the housing market is navigating a period of adjustment, with sellers, buyers, and market dynamics adapting to the evolving economic landscape. The current trends suggest a cautious optimism, with the market poised for further shifts in the coming year.