Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

House prices start to see a spring boost

by May 22, 2023
May 22, 2023
House prices start to see a spring boost

The housing market has enjoyed a delayed spring boost, with sales prices rising at the highest rate so far this year as mortgage rates ease.

The average price of properties sold in Britain hit a record £372,894 this month, according to Rightmove, a 1.8 per cent increase, or £6,647, on April and ahead of a historic average rise in May of 1 per cent. Prices were also 1.5 per cent higher than they were in the same month last year.

The largest monthly increases in asking prices were in London and the southeast, up by 2.8 per cent and 2.3 per cent, respectively. The average house price in the capital hit £696,477. Northeast England remained the cheapest region, where prices fell by 2.3 per cent to £179,693.

The discount from final asking price to agreed sale price has steadied at a nationwide average of 3.1 per cent, in line with normal market levels. Agreed sales numbers remain 3 per cent behind the pre-pandemic level in 2019.

Tim Bannister, Rightmove’s director of property science, said: “This month’s strong jump in new seller asking prices looks like a belated reaction and a sign of increasing confidence from sellers, as we’d usually see such a big monthly increase earlier in the spring season.”

He suggested one reason for rising confidence may be an easing of previously gloomy predictions for the market. He also said it was more likely that the market would continue to move towards a more normal level of activity this year after the exceptional business conducted during the pandemic, when stamp duty breaks turbo-charged demand.

The record numbers defy warnings that higher interest rates, which translate to more expensive mortgages, and the rising cost of living will cause a sharp slowdown in the housing market.

Confidence has been helped by a reduction in mortgage borrowing costs from the highs reached in the aftermath of last September’s mini-budget. Despite another increase in the base rate to 4.5 per cent, the average rate for a five-year fixed mortgage for homebuyers with a 15 per cent deposit was 4.52 per cent last week, down from 5.89 per cent in October. Investors expect only one more increase from the Bank of England this year before rates start to fall.

Bannister said: “Steadying mortgage rates and a generally more positive outlook for the economy are also contributing to more seller confidence, though there are likely to be more twists and turns to come.” He said the market was still very price-sensitive and sellers should not damage their prospects by overpricing initially.

Capital Economics, the consultancy, estimates that prices could drop by 20 per cent from the 2021 peak, but only if mortgage rates stay at 5 per cent for at least another 18 months. Experts say it is more likely that rates will come down as the economy slows, leading to overall housing price falls of between 10 per cent and 12 per cent from the average recorded in 2021.

Read more:
House prices start to see a spring boost

0
FacebookTwitterGoogle +Pinterest
previous post
Hospitality sector offers salary boost to cope with skills shortage
next post
Facebook to be fined £648m for mishandling user information

You may also like

Video Production Mistakes That You Might Want to...

February 22, 2023

SMEs support expansion of work visas to tackle...

July 4, 2023

What Should I Know Before Hiring Kitchen Fitters?

February 18, 2025

Farmers seek judicial review over inheritance tax clampdown

June 24, 2025

Brits buying second homes in Spain set to...

January 14, 2025

Barclays announces closure plans for 14 more banks...

July 14, 2023

British Steel’s Chinese owner seeks huge government aid...

October 3, 2022

Over 90% of mid-sized businesses struggling to access...

June 26, 2023

Navigating the UK Roads – Cycling Tips for...

April 12, 2023

Peterborough Crowned Best British City for SME Jobs

June 20, 2024

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • WATCH: Trump says he is hopeful Hillary Clinton will be investigated for election fraud

      August 1, 2025
    • Trump moves nuclear submarines weeks after praising sub’s power in Iran strikes

      August 1, 2025
    • Recess on ice as Republicans hunker down for high-stakes nominee blitz

      August 1, 2025
    • Iran says it has ‘plenty of scientists’ left to restart uranium enrichment, despite US, Israeli strikes

      August 1, 2025
    • No, Tariffs Are Not Similar to Consumption Taxes Like a VAT

      August 1, 2025
    • Trump repositions 2 nuclear submarines after ‘highly provocative’ Russian comments

      August 1, 2025

    Categories

    • Business (8,651)
    • Investing (2,168)
    • Politics (16,281)
    • Stocks (3,228)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved