Housing market shows signs of recovery

Housing market shows signs of recovery

0:02 AM, 10th July 2024, About 3 days ago

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The housing market in England and Wales is showing signs of recovery, according to new data from e.surv.

The average sale price of a home climbed nearly £1,500 (0.4%) to £360,175 in June, the strongest performance for almost a year.

This follows a period of decline, with house prices down 1.6% year-on-year.

However, this decrease is largely driven by London and the South East, with Wales and the North East experiencing positive growth.

‘Improving picture for the market in England and Wales’

Richard Sexton, a director at e.surv, said: “Our data shows an improving picture for the market in England and Wales and one that we expect to further improve over the coming months.

“Prices are now within 5% of the previous peak reached in October 2022.”

He adds: “Of course, there are regional stories. The 1.6% year-on-year decrease in house prices seen across England and Wales almost disappears if we exclude London and the South East.

“The North East and Wales continue to lead the charge in improving house price performance.”

Prospect of lower interest rates

The firm believes the recent market improvement is due to a combination of factors, including easing cost-of-living pressures and the prospect of lower interest rates.

The Labour Party’s recent election win is also seen as a positive development, with their manifesto pledges on housing expected to boost buyer confidence.

The report suggests a more significant and lasting pick-up in market conditions.

New government policies on housing supply, planning and affordability are anticipated, alongside continued support for home buyers through mortgage guarantee schemes.

While affordability remains a concern, the overall outlook for the housing market appears to be stabilising and, e.surv says, potentially on the rise.

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