Looking at the sales market, Knight Frank states that the mainstream market has been affected by the rate cut, while the general election made little impact.
Due to the rate cut, Knight Frank forecast that demand and sales volumes will be stronger in the final months of the year compared to the same period in 2023. Last year, high inflation and high borrowing costs impacted sales and the number of transactions was 19% below the five-year average (excluding 2020).
Knight Frank’s forecast for 2024 is 3% price growth for the UK as a whole, and 2% for Greater London. So far, house price indices have shown registered growth of just over 2% in July for the overall UK market. This suggests that Knight Frank’s predictions should be met if not exceeded. There has been growth of 1.6% in Greater London in the year to June so this is coming up to the 2% projection.
