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UK house prices rise again as easing of mortgage rates tempts more buyers

UK house prices rose for the second month in a row in November, according to a leading index, as a slight easing in mortgage rates helped coax more buyers into the market.

The average price of a UK property rose by £1,394 – or 0.5% – last month to £283,615, according to the mortgage lender Halifax.

It signals an uptick in activity across the housing market, where price growth has stalled over the past year because of an increase in interest rates and subsequent affordability pressures that have driven away otherwise eager buyers.

UK house prices have also been underpinned by a shortage of available properties over the past year, as many sellers wait for the market to normalise and prices to recover.

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On an annual basis, prices are down 1%, although Halifax said this was a “relatively modest” drop given the economic headwinds that have weighed on consumers over the past 12 months. Average house prices are still £40,000 above pre-pandemic levels, having been skewed during the Covid crisis, when people scrambled to buy larger homes.

“Recent figures for mortgage approvals suggest a slight uptick in activity levels, which is likely as a result of an improving picture on affordability for homebuyers,” Kim Kinnaird, the director of Halifax Mortgages, said. “With mortgage rates starting to ease slightly, this may be leading to increased buyer confidence, seeing people more inclined to push ahead with their home purchases.”

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However, Kinnaird said house prices were unlikely to continue their upward climb into the new year. “The economic conditions remain uncertain, making it hard to assess the extent to which market activity will be maintained. Other pressures – like inflation, the broader cost of living, overall employment rates and affordability – mean we expect to see downward pressure on house prices into next year.”

Northern Ireland has experienced the strongest rise in house prices over the past 12 months, with the average home costing £4,294 more compared with last year, at £184,684.

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The Guardian

By Kalyeena Makortoff

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UK house prices rise for third straight month as mortgage rates fall

Nationwide says average property price was £258,557 in November, £5,231 down on same month last year

UK house prices rose for a third consecutive month in November as the market responded to hopes that mortgage rate costs had peaked.

Nationwide, the UK’s biggest building society, said prices rose 0.2% month on month in November, after a 0.9% rise in October and a 0.1% rise in September. Economists polled by Reuters had forecast a 0.4% fall in prices in November.

It is the first time that homeowners have seen the value of their property rise at least three months in a row since the summer of last year.

On an annual basis, prices were down 2% in November, the best in nine months and after a 3.3% year-on-year fall in October.

The average price of a home was £258,557 in November, £5,231 down on the value of a typical property in the same month last year.

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Nationwide said the improvement in the market has followed the view that the Bank of England’s move to hold the base interest rate at 5.25%, after a run of 14 consecutive increases, means soaring mortgage costs will start to drop, fuelling more activity in the housing market.

“There has been a significant change in market expectations for the future path of the bank rate in recent months which, if sustained, could provide much-needed support for housing market activity,” said Robert Gardner, the chief economist at Nationwide. “By the end of November this had shifted to a view the rates have now peaked and that they will be lowered to about 3.5% in the years ahead.”

In November, the Bank of England kept the rate at 5.25% for a second time, albeit still at a 15-year high, which has helped to push some two- and five-year fixed mortgage rates back down to below 5% – down from peak levels of more than 6%.

Last month, the sharp drop in inflation from 6.7% to 4.6% fuelled hopes that the Bank of England might start cutting rates next year.

However, earlier this week Andrew Bailey, the governor of the Bank of England, said there was no immediate prospect of an interest rate cut as the Bank faces a tough battle to bring inflation back to its 2% target.

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Mark Harris, the chief executive of the mortgage broker SPF, said: “The direction of travel for new mortgage rates is downwards, with a number of lenders making reductions this past week and bringing some early Christmas cheer to borrowers.

“However, while interest rates appear to have peaked, those hoping base rate will move swiftly downwards again to the rock-bottom levels of the recent past are likely to be disappointed. Pricing is higher than borrowers have grown used to over the years, meaning those buyers relying on mortgages are more price-sensitive on the back of ongoing affordability concerns.”

By Mark Sweney

Source: The Guardian

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The housing market is booming – if you know where to look

Residential property prices in some parts of Britain have continued to increase strongly over the past year despite the wider housing market slowdown, according to Halifax.

More than 300 local authority areas across Britain were analysed during Q3 2023 based on Halifax’s house price index.

This was compared with Halifax’s house price data covering the corresponding period last year.

The study revealed that house prices rose in more than 70 areas, led by gains in the Brecon Beacons, Powys, in Wales, where house prices rose by an average of 17.4% year-on-year.

Kim Kinnaird, director at Halifax Mortgages, said: “There are multiple factors which can impact house prices in your local area, ranging from the mix of properties available and the extent of any new housing, to the quality of schools and abundance of job opportunities.

“What’s clear is that the UK housing market is not a single entity that performs in a uniform way across the country, there are differences. While at a national level the current squeeze on mortgage affordability has seen property prices fall over the last year, in many regions there remain pockets of house price growth. While a limited supply of properties for sale could be a factor, this also suggests in some areas, local market activity – and demand among buyers – remains strong.

“Many of the places highlighted in our research also benefit from more remote or rural surroundings and incorporate areas of outstanding natural beauty. These are traits which continue to be desirable for prospective homeowners, bucking the trend of the wider performance of the housing market.”

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Here are the top 10 local areas of Britain with the strongest house price growth over the past year, according to Halifax:

  1. Powys, Wales, £216,307, £253,958, +17.4%, or £37,651
  2. East Lindsey, East Midlands, £194,533, £220,421, +13.3%, or £25,888
  3. Moray, Scotland, £162,258, £179,606, +10.7%, or £17,347
  4. Babergh, Eastern England, £317,383, £349,965, +10.3%, or £32,583
  5. Sunderland, North East, £138,579, £150,862, +8.9%, or £12,283
  6. Ealing, London, £494,100, £531,127, +7.5%, or £37,027
  7. Westminster/City of London, London, £714,242, £767,350, +7.4%, or £53,108
  8. Bolsover, East Midlands, £167,398, £179,453, +7.2%, or £12,054

=9. Cumberland, North West, £165,346, £176,470, + 6.7%, or £11,124

=9. Rossendale, North West, £185,658, £198,102, + 6.7%, or £12,444

Here are the local areas with the strongest house price inflation in Scotland, Wales and the English regions over the past year, according to Halifax:

– East Lindsey, East Midlands, £194,533, £220,421, + 13.3%, or £25,888

– Babergh, Eastern England, £317,383, £349,965, + 10.3%, or £32,583

– Ealing, London, £494,100, £531,127, + 7.5%, or £37,027

– Sunderland, North East, £138,579, £150,862, + 8.9%, or £12,283

– Cumberland, North West, £165,346, £176,470, + 6.7%, or £11,124

– Moray, Scotland, £162,258, £179,606, + 10.7%, or £17,347

– Runnymede, South East, £439,825, £462,301, + 5.1%, or £22,476

– Torridge/West Devon, South West, £295,521, £306,436, + 3.7%, or £10,915

– Powys, Wales, £216,307, £253,958, + 17.4%, or £37,651

– Sandwell, West Midlands, £178,755, £185,798, + 3.9%, or £7,043

– Kingston-upon-Hull, Yorkshire and the Humber, £121,289, £127,523, + 5.1%, or £6,234

Read about the UK Housing Market via our Specialist Residential & Buy to Let Division

Commenting on the data, Tom Bill, head of UK residential research at Knight Frank, said: “The UK is made up of tens of thousands of individual housing markets, which means price growth can also diverge between two areas in the same local authority.

“Broadly speaking, more affordable parts of the country are gradually closing the gap with London, where affordability is at its most stretched. The gap will get narrower without closing as buyers look beyond the capital for better value.

“The more important point for anyone interpreting house prices at the moment, is that fewer transactions can distort the data. The underlying health of the housing market is not necessarily gauged by what is happening to house prices but rather transaction volumes, which are down by more than a fifth.”

Nigel Bishop of Recoco Property Search, commented: “An increasing number of house hunters discover the upsides of rural living and favour areas that not only sit within close proximity of parks but also offer a community feel and an array of lifestyle choices.

“It’s particularly city dwellers as well as young families, who wish to raise their children in a more quaint environment, that are driving this demand for properties in a more rural setting. Boutique towns and villages with restaurants, cafés, entertainment as well as sporting facilities are especially sought-after which has resulted in property prices in such locations to go up.”

Jeremy Leaf, north London estate agent, added: “These numbers are interesting because they show the pattern of values in different areas and how markets are not the same. There is no real substitute for studying the market and area you are interested in carefully because it may well be in front of ,or behind, the national average or pattern.
“The market is made up of many different micro markets, producing different results, which is why it is so important to do the groundwork. A national average figure should be relied upon as a guide only.
“In any event, we tend to be a bit too fixated on prices. There are other factors also worth taking into consideration such as transaction numbers, discount to asking price and time on the market, as well as supply and demand. From neighbourhood to neighbourhood the picture can alter significantly.”

By Marc Da Silva

Source: Property Industry Eye

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UK house prices set to rise by almost 18% in five-year forecast

UK house prices have fared better than expected over this past year, according to new research from Savills, as it reveals its outlook for the next five years.

Despite the fact that the Bank of England is yet to lower its base rate, instead holding it at 5.25%, the fact that lenders have continued to slash prices and offer new products over recent months has helped to buoy the housing market more than had been anticipated this year.

In its revised outlook for UK house prices, estate agency Savills predicts that next year will be the second and final year of overall property price falls, with a -3% dip by the end of 2024. After this, it expects the market to return to growth for the proceeding years up to 2028.

In numbers, this looks like a 3.5% uptick in UK house prices in 2025, followed by a stronger gain of 5% in 2926, a further hike of 6.5% in 2027, and a 5% rise in 2028. Overall, this equates to a cumulative increase across mainstream residential markets of 17.9% over the next five years.

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UK house prices and transactions to recover

Much of the current outlook is based on what is expected to happen with interest rates and inflation, which will impact mortgage rates overall. The general consensus is that rates will begin to come down, with the Bank of England expected to bring its base rate down at least by the latter part of 2024.

Mortgage rates have a direct impact on affordability in the property market, and can therefore begin to affect UK house prices and transaction levels. Thankfully, Savills points out that while interest rates have now peaked, so have house price falls in this cycle.

Savills head of research Lucian Cook notes: “The expectation of a gradual reduction in rates suggests a progressive restoration of buying power and steady recovery in demand.

“We expect growth to accelerate as affordability pressures ease, with the strongest growth forecast for 2027 when rates reach their long-term neutral level. From there we expect growth to settle at a rate broadly in line with income growth.”

Transaction levels have undoubtedly suffered in some – but not all – parts of the market, although some of this drop-off in activity can be attributed to a slowdown in relation to the post-Covid boom. Of course, the cost of living crisis and high inflation have also had an impact on this.

Cash buyers have been more active than ever in the current climate, which is unsurprising, and this is another factor conrtibuting towards keeping UK house prices afloat. However, by mid-2024, Savills expects transaction levels to coincide with recovery of UK house prices, as mortgage affordability improves.

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North, Wales and Scotland hold their own

According to the report, the strongest performing markets at the moment remain the north of England, as well as Scotland and Wales. However, Savills also points towards a faster recovery taking place in London, as the economic outlook improves, after it has lagged behind the rest of the UK for some time.

The report hones in on each of the UK’s regions, while also noting that the UK property market as a whole is “in the late stages of a typical housing market cycle”. But it offers an interesting insight into how the more affordable property markets can often show the most resilience.

For example, between now and 2028, the top-performing regions in terms of house price growth are predicted to be the north east with 21.4% cumulative growth, the north west with 20.2% cumulative growth, and Yorkshire and the Humber and the West Midlands, both with 20.2% cumulative growth.

These figures are all comfortably above the average level of growth for UK house prices, and far surpass London’s prediction of a 13.9% total house price rise over the five-year period.

The report notes: “In 2024, further modest price falls will be driven by stretched affordability across all regions, though slightly more so in London and the South East where buyers continue to need to accumulate much bigger deposits and borrow more relative to their income than the national average.

“Once the Bank of England begins to cut the base rate in the second half of 2024, we expect affordability to ease with every region seeing improving conditions compared to 2023. The more affordable markets in the North, where mortgaged buyers are under less strain, should see the most recovery initially.”

By Eleanor Harvey

Source: Buy Association

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UK house prices rose unexpectedly in October, index shows

UK house prices unexpectedly rose last month, according to Nationwide building society, with some economists who had predicted a fall calling it a “massive surprise”.

The 0.9% month-on-month increase – which added more than £1,600 to the cost of a typical property – has been linked to a shortage of homes on the market for buyers to choose from. The last time Nationwide’s index showed a bigger monthly increase was in March 2022.

However, Britain’s biggest building society said the average property value was still down year on year – with a 3.3% drop in October compared with the same month last year. This is down from an annual drop of 5.3% recorded in September.

Nationwide said the average price of a UK property was £259,423 at the end of October – up from £257,808 a month earlier.

Robert Gardner, the lender’s chief economist, said: “The uptick in house prices in October most likely reflects the fact that the supply of properties on the market is constrained.”

Sarah Coles, the head of personal finance at the investment platform Hargreaves Lansdown, said: “October’s bump comes down to a shortage of property for sale, making it more difficult for buyers to drive a hard bargain.” Sellers “sat on their hands” in October, she added.

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Gardner said there was little sign of “forced selling”, which would exert downward pressure on prices, as labour market conditions were solid and mortgage arrears were at historically low levels, despite difficulties for some homeowners.

Other commentators said the Bank of England’s decision on 21 September to keep interest rates on hold after a string of increases gave an autumn fillip to the housing market and would have calmed the nerves of many would-be buyers.

The housing market in Britain has slowed in recent months as the Bank has raised rates sharply to counter a rise in inflation triggered in part by Russia’s invasion of Ukraine, which sent energy prices soaring.

Gardner said that, despite last month’s unexpected bump, UK housing market activity had “remained extremely weak”, with only 43,000 house purchase mortgages approved in September – about 30% below the monthly average in 2019.

He added: “Activity and house prices are likely to remain subdued in the coming quarters. Despite signs that cost of living pressures are easing, with the rate of inflation now running below the rate of average earnings growth, consumer confidence remains weak, and surveyors continue to report subdued levels of new buyer inquiries.”

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Imogen Pattison, an assistant economist at the consultancy Capital Economics, which had forecast a 0.6% fall in October, said last month’s large increase in house prices “was a massive surprise, given higher mortgage rates should be severely restricting the number of people able to buy and the amount they can spend”.

Most experts agreed that this was not the start of a recovery for the property market.

Last week, Lloyds Banking Group predicted UK house prices would continue to slide this year and in 2024, and would not start to recover until 2025.

Santander expects a larger drop of about 7% for the whole of 2023, followed by a 2% fall in 2024. The estate agent Knight Frank also predicts a 7% fall this year but a 4% decrease next year.

By Rupert Jones

Source: The Guardian

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UK house prices drop again as buyer demand and sales fall sharply

The outlook for house prices continues to looks bleak as high mortgage rates weigh on the property market, the latest Royal Institution of Chartered Surveyors (RICS) survey shows.

The RICS Residential Market Survey, which measures the percentage of surveyors that are reporting house price increases versus declines, shows a reading of -68% in August from -55% in July – its lowest level since the financial crisis.

Additionally -47% of respondents noted a decline in agreed sales last month, up from -45% in July, with new sale instructions following a similar trend, dropping from -17 in July to -26 this time round.

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Looking ahead, near-term sales expectations remain subdued, although the net balance has turned marginally less negative, at -38%, compared to last month’s reading of -45%. On a 12-month view, the trend in home sales is anticipated to flatten out, evidenced by the net balance moving from -25% in July to -5% in August.

Looking across to the lettings market, conditions remain more positive than the sales market, with a net balance of +47 of survey respondents noting a rise in tenant demand (+59 in July). However, new landlord instructions fell slightly with a reading of -20 (-19 in July).

Given this mismatch between demand and supply, a net balance of +60% of contributors foresee rental prices being driven higher over the coming three months.

RICS chief economist, Simon Rubinsohn, commented: “The latest round of feedback from RICS members continues to point to a sluggish housing market with little sign of any relief in prospect.

Read about the UK Housing Market via our Specialist Residential & Buy to Let Division

“Buyer enquiries remain under pressure against a backdrop of economic uncertainty and the high cost of mortgage finance. Meanwhile, prices are continuing to slip albeit that the relatively modest fall to date needs to be seen in the context of the substantial rise recorded during the pandemic period. Critically, affordability metrics still remain stretched in many parts of the country.

“The other side of the softer demand in the sales market is the continuing strength of rental demand. The yawning gap with rental supply is clearly visible in the RICS Rent Expectations indicator which remains close to an all-time high.

“Anecdotal comments from contributors that landlords are leaving the sector suggests the challenging environment for tenants is unlikely to improve any time soon”.

Source: Property Industry Eye

By Marc Da Silva

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UK house prices fall by 1.9% in August

The average UK house price fell by 1.9% in August, the largest monthly fall since November 2022, the latest Halifax house price index shows.

Property prices dropped by 4.6% on an annual basis, from 2.5% in July, though prices were at a record peak last summer.

As a result, the typical UK home now costs £279,569, down by around £14,000 over the last year to the level seen in early 2022.

However, average prices remain around £40,000 above pre-pandemic levels.

All UK nations and the nine English regions registered a decline in house prices over the last year, with northern locations generally proving to be more resilient than areas in the south.

Buyers faced with the need to find larger deposits and fund bigger monthly repayments means the South East is experiencing the biggest drop, with house prices down by 5.0% on an annual basis.

Wales, which recorded some of the biggest gains in property prices during the pandemic-driven race for space, has seen property prices fall by 4.7% over the last year.

In Northern Ireland property prices have fallen by 1.5% annually and in Scotland property prices fell by just 0.6% over the last year, the slowest pace of decline in the UK.

London remains the most expensive place in the UK to purchase a home, with an average property price of £529,814. However with prices down by 4.1% over the last year, it has seen the biggest fall of any region in cash terms (-£22,777).

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Kim Kinnaird, director of Halifax Mortgages, said: “It’s fair to say that house prices have proven more resilient than expected so far this year, despite higher interest rates weighing on buyer demand. However, there is always a lag-effect where rate increases are concerned, and we may now be seeing a greater impact from higher mortgage costs flowing through to house prices. Increased volatility month-to-month is also to be expected when activity levels are lower, though overall the pace of decline remains in line with our outlook for the year as a whole.

“Market activity levels slowed during August, and while there is always a seasonality effect at this time of year, it also isn’t surprising given the pace of mortgage rate increases over June and July. While these did ease last month, rates remain much higher compared to recent years. This may well have prompted prospective buyers to defer transactions in the hope of some stability, and greater clarity on the future direction of rates in the coming months. The market will continue to rebalance until it finds an equilibrium where buyers are comfortable with mortgage costs in a higher range than seen over the previous 15 years.

“We do expect further downward pressure on property prices through to the end of this year and into next, in line with previous forecasts. While any drop won’t be welcomed by current homeowners, it’s important to remember that prices remain some £40,000 (+17%) above pre-pandemic levels. It may also come as some relief to those looking to get onto the property ladder. Income growth has remained strong over recent months, which has seen the house price to income ratio for first-time buyers fall from a peak of 5.8 in June last year to now 5.1. This is the most affordable level since June 2020, and will be partially offsetting the impact of higher mortgage costs.”

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Managing director of Barrows and Forrester, James Forrester, commented: “Such a sharp annual decline will certainly spur panic amongst the nation’s homebuyers and sellers at first glance. But it’s important to remember that this time last year the market was flying high at the peak of the pandemic price boom, so it would have taken a monumental spike in market activity this time around to avoid an annual decline in property values.

“It’s also important to note that August is peak silly season in the UK property market and so there is very much a seasonal influence at play here. Buyers, sellers and property professionals alike will have taken time off for their summer breaks, the result of which is a reduction in market activity and a more sluggish rate of house price growth.”

Jonathan Hopper, CEO of Garrington Property Finders, added: “Despite the emergence of some prematurely optimistic voices, this is no passing wobble for the property market.

“The reason is affordability. Interest rates have risen a lot and average house prices have come down a little – at least compared to how high they were.

“With this monthly drop, questions will be asked about the rate of descent, and whether we’re still on course for a soft landing.

“The rising cost of mortgages, and the reduced amount of money that would-be buyers can borrow, have not been sufficiently offset by falling prices.

“As a result, some buyers who need a mortgage to fund their purchase are either postponing things in the hope prices fall further, or looking for a smaller home in a cheaper area.
“Meanwhile at the top end of the market, cash buyers sense that their hand is getting ever stronger.

“Those with a decent amount of cash behind them can afford to be more pragmatic in how they structure their finances and their house-hunting strategy. And while everyone is wary of paying a price now that might be lower in six months’ time, committed, proceedable buyers find themselves in a commanding position as sellers now regularly accept offers well below asking price.”

By Rozi Jones

Source: Financial Reporter

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Home sellers are still raising asking prices despite mortgage crunch

Optimistic home sellers have continued to raise asking prices this year, despite the rate crunch that has added hundreds of pounds to monthly mortgage bills.

Property listing giant Rightmove said although asking prices rose annually at the slowest pace since the end of 2019, they were still going up.

The average price of newly-listed homes coming to market rose by 0.5 per cent, to £371,907, in the year to July – and is up 2.6 per cent since the start of the year.

But many sellers are proving to be overly confident as there has been a rise in the number of properties seeing asking prices cut after they initially go on the market and fail to sell.

Buyers have been forced to lower their expectations amid rising mortgage rates that have added hundreds of pounds to the monthly cost of buying the same priced property as last year.

The hardest hit areas are those were house prices are highest and buyers most stretched.

Rightmove said prices have proved more resilient than expected, but that surging mortgage rates were now beginning to weigh on the property market.

‘While prices and sales bounced back this year much more strongly than most expected, the unexpectedly stubborn inflation figures and the surprise of further mortgage rate rises when many felt that they had stabilised, have contributed to the fall in prices and number of sales agreed,’ said Rightmove’s director, Tim Bannister.

‘The interest-rate brakes being applied more strongly to slow the economy are now beginning to bite in the housing market.’

Rightmove said that asking prices fell slightly, by 0.2 per cent, on a monthly basis, compared to zero growth in June and this was marginally below the usual stagnation seen at this time of year.

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Rightmove’s comments echo the latest survey by the Royal Institution of Chartered Surveyors, which found that buyer interest, sales and property prices suffered in June as mortgage rates continued to rise.

June saw new buyer enquiries reach an eight-month low, pointing to a ‘renewed deterioration’ in the UK sales market, the Rics said.

Meanwhile, Britain’s biggest mortgage lender Halifax revealed that house prices fell at their fastest rate in 12 years this month, dropping £7,500 on average over the past year.

Rightmove’s report shows sales agreed are now 12 per cent behind 2019’s more normal market level, contrasting with the surprisingly strong first five months of the year.

However, buyer demand has remained resilient, rising 3 per cent compared to the same period in 2019.

Rightmove said that estate agents are reporting that right-priced homes are still attracting buyers due to the shortage of property for sale compared to historic norms.

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Bannister said: ‘First-time buyers, trader-uppers and downsizers with higher deposits and lower mortgage requirements appear to be still keenly searching the market, not wanting to miss out on the right property that is not over-priced and that they can still afford.’

Bigger homes have proved harder to shift, with agreed sales for second-stepper homes and top-of-the-ladder homes some 14 per cent behind last yea cr.

In comparison, sales for smaller two-bed homes fared better, falling by a smaller 9 per cent.

‘The continuing twists and turns of persistent inflation and higher mortgage rates have posed some additional challenges for the market,’ Bannister said.

‘Agents report that some movers are pausing until there is more certainty that mortgage rates have stabilised, as well as reviewing how higher costs affect their plans.’

On a regional basis, London, the East and South East were the only regions to see prices fall compared to last year, with falls between 0.4 per cent and 0.6 per cent.

The fastest annual growth was in Scotland, where average asking prices surged by 3.6 per cent, followed by Yorkshire and the Humber with 2.1 per cent growth.

By Camilla Canocchi

Source: This is Money

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‘Surprise’ as average UK house prices rise in April

Average house prices in the UK rose by 0.5% to £286,489 from March to April, Government figures show.

The Office for National Statistics (ONS) house price index for April showed that this was a 3.5% annual increase or £9,000 higher. The growth has dropped from the 4.1% yearly rise recorded in March. Additionally, average house prices were down £7,000 from their peak in September.

Prices still above pre-pandemic levels

Vikki Jefferies, propositions director at Primis, said the figures were not surprising, “given the strain of higher interest rates and unpredictability of the housing market”.

However, she added: “It is a positive sign that house prices still remain well-above pre-pandemic levels, and the downward trend has been much less pronounced than some predicted at the beginning of the year.

“The main challenge for homebuyers now is a volatile mortgage market, which has seen mortgage rates rise to their highest levels since Q4 2022. With more than 400,000 people seeing their existing fixed deals end between July and September, it is crucial that borrowers seek financial advice as soon as possible to ensure they are getting the best deal.”

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‘May be the last increase for a while’

Karen Noye, mortgage expert at Quilter, said it was a surprise that house prices had risen and added: “However, considering the mortgage storm that is currently battering the country, this is likely the last time we will see an increase in prices for some time.”

“This morning’s flat inflation figure will have been exactly what mortgage borrowers didn’t want to see as those with low-cost deals will be bracing for their mortgage deals to come to an end and sadly find that their monthly payments skyrocket.”

Regional differences

Average house prices in England increased by 0.5% month-on-month to £305,731, which was 3.7% higher than last year.

The greatest increase was recorded in London, where average values rose by 2.1% over the month to £533,687. Meanwhile, prices in the South East dropped by 0.5% to £391,766. These represented annual increases of 2.4% and 3.5% respectively.

At 2.4%, the annual uptick for house prices in London was the smallest growth recorded in April, while the North East saw the biggest jump with a 5.5% rise to £159,900. Compared to March, average house prices in the North East were 1.8% higher.

In Wales, the average house price fell since March by 1.3% to £212,834. Annually, this was a 2% increase.

Houses prices in Scotland rose by 1.3% on average since March to £187,150, which was also a 2% rise. Meanwhile, in Northern Ireland, average house prices fell by 1.8% month-on-month to £172,005 and recorded a 5% annual rise.

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Property and buyer type

First-time buyers paid 0.6% more for their homes on average in April, with values coming to £238,114. Former owner-occupiers saw prices go up by 0.5% to £336,056. Annually, these represented rises of 3.3% and 3.7% respectively.

The value of an average detached home increased by 4.2% annually to £453,771, while a semi-detached home’s value rose by 4.5% to £278,729.

The average price of a terraced home went up by 2.1% to £231,525 compared to last year, while the average price for a flat or maisonette increased by 2.7% to £229,752.

By Anna Sagar

Source: Your Money

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London postcodes remain priciest for property sales

The latest research by London lettings and estate agent, Benham and Reeves shows that the W1K postcode of Westminster sits top of the table as the nation’s priciest so far in 2023.

Since the start of the year, the average home sold in the postcode has gone for a staggering £8m.

Westminster also accounts for the joint second most expensive, with the SW1X postcode seeing homes sell for an average of £2.45m along with the City of London’s EC4V postcode.

Camden’s WC2A postcode also ranks high with an average sold price of £2.1m so far this year and, in fact, London dominates the top 10 priciest postcodes in England and Wales.

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The priciest property postcode outside of London is currently the GU25 postcode in Runnymede where homes have commanded an average of £1.32m since the start of the year.

The TQ8 postcode in Devon has seen an average sold price of £1.3m with Cornwall’s PL28 ranking third, where the sold price sits at £1.23m.

Buckinghamshire’s HP8 (£1.2m), HP9 (£1.18m) and SL8 (£1.18m) also rank within the top 10, along with IG7 in Epping Forest (£1.09m), KT11 in Elmbridge (£1.035m), TN7 in Wealden (£962,500) and Guildford’s KT24 (£950,000).

Benham and Reeves director Marc von Grundherr, comments:“Much has been said about the London lethargic housing market performance since the start of the pandemic and the capital has certainly trailed other areas of the UK with respect to the rate of house price growth seen in recent years.

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“However, it remains the most prestigious pocket of the market when it comes to the nation’s priciest postcodes and by quite some margin, even in cooler market conditions like those that we’ve seen so far this year”.

He adds: “In fact, very few postcodes outside of the M25 can rival the might of London, but that’s not to say that there aren’t some very valuable postcodes dotted elsewhere around the nation.”

By David Burrows

Source: Mortgage Strategy