RBC Capital analysts said in a note Wednesday that UK house prices are so far more likely to rise than fall this year.
The bank noted the latest data from the Land Registry, which showed house prices fell by 1.4% (down £4,000) to £285,000 in 2023, although house prices rose by 0.3% (up £850) in December.
"Today's data confirms that 2023 was not the year of the house price crash, and with falling inflation, falling mortgage rates, and rising wages, we doubt that a crash will come in 2024," said RBC Capital.
"The recent words spoken and actions taken by housebuilders confirms our view the housing market is looking up rather than down so far this year," they added.
The bank feels "the scene is set for a recovery," and they hope that any moves taken by UK politicians this election year will help rather than hinder the housing market recovery.
"The early signs point towards a recovering housing market in 2024. We believe that house prices will be stable/rise slightly in 2024 and that transaction volumes will rise as mortgage rates fall," said the firm.