Mixed signals in property market as signs of recovery emerge

Annual house prices in England and Wales fell slightly in January, according to the latest e.surv house price index.

However, according to the data monthly house prices have seen a small increase.

E.surv says average house prices in England & Wales are £361,029, up 0.2% on December, down 3.7% annually.

House prices saw a slight increase this month

Richard Sexton, Director at e.surv, comments: “House prices in England and Wales saw a slight increase this month, rising by £620 (0.2%) to reach a level last seen in February 2022. This marks only the second time in the past 15 months that prices have grown by more than 0.1%.

“The three areas with an overall positive change in growth rates were the North East, Greater London and the South West. In December, for the fourth month in succession, the North East has the highest rate of price growth of all the ten GOR areas.”

The annual average sale price of completed home transactions using cash or mortgages in England and Wales in January 2024 fell by some £13,400, or -3.6%, and now stands at £361,029.

Whilst transactions remain at their lowest levels in the last seventeen years, the housing market is slowly beginning to improve.

Market sentiment is improving

Mr Sexton adds: “Our own experience is that market sentiment is improving. The combination of better news with regard to mortgage approvals in December and the holding of the bank base rate at 5.25% will encourage buyers.

“We, of course, have a budget in less than a month’s time and all parties are looking at how they can better support the housing market.

“Housing remained fifth in the Ipsos Mori issues index, but its score edged upwards, suggesting that it is becoming more important to voters and this may be significant when it comes to the allocation of any public investment decisions.”

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