Housing market shows signs of slow recovery

Housing market shows signs of slow recovery

0:04 AM, 15th April 2024, About 3 months ago

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There are signs of a slow recovery in the UK’s housing market with the average house price in England and Wales increasing by a modest 0.1% in February to £361,368.

According to a new report by chartered surveyors e.surv, this is the first time the average price has reached this level since February 2022.

While the monthly increase is small, it’s a positive sign after a period of decline, the firm says.

The annual rate of house price growth has been falling since its peak in August 2022, but the decline appears to be slowing.

While 74 local authorities saw rising prices in February, three northern regions topped the growth charts.

‘Average sale price of completed home transactions’

Richard Sexton, a director at e.surv, said: “Our analysis this month shows that the average sale price of completed home transactions using cash and/or mortgages rose by just over £200 – or 0.1% – to £361,368, and is now at a level first seen in February 2022.

“It is also evident that the average price has hovered around the £361,000 mark for the last four months.

“While the movement is muted when we look at March’s performance, there are reports of a market in slow recovery.

“Certainly, the balance of purchase against re-financing appears to be changing.”

Underpinning growing market confidence

The firm says that the slight improvement is down to solid wage growth and a belief that interest rates will ease over the coming months underpinning growing market confidence.

Mr Sexton said: “The chronic undersupply continues to support prices but there are now more products available to buyers than there have been for some months.

“Ultimately affordability pressures are expected to ease but buyers cannot afford to throw caution to the wind.”

He added: “Looking forward, we saw little to no help for the housing market in March’s budget, but in advance of a possible winter General Election, we may see another ‘fiscal’ event that may give some further impetus to home buyers.”

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