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

Doshi Secures Pre-Seed Funding To Expand Gamified Learning...

June 21, 2023

Declining Job Vacancies Stoke Hopes for Interest Rate...

April 29, 2024

Banks to roll out coin ATMs in communities...

February 10, 2025

Business Matters’ Secrets of Success: Brendan Noud

October 2, 2024

DMARC: The ultimate guide to protecting your email...

April 6, 2023

The Social Media Metrics You Need To Focus...

January 16, 2023

Pound hits 20-month high against Euro as ECB...

December 11, 2024

Eddie Jordan made me feel like I knew...

March 21, 2025

Stormy skies dampen festive cheer for Mitchells &...

January 15, 2025

Pre-loved children’s clothing marketplace, Cress, receives six-figure cash...

June 7, 2023

    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

    • Padel club boom sees 3,200 venues built in 2024 as global popularity accelerates

      June 27, 2025
    • Sweet or taxable? M&S strawberry sandwich sparks new VAT debate

      June 27, 2025
    • Starmer thanks business for footing tax bill

      June 27, 2025
    • UK SMEs must strengthen cybersecurity as geopolitical threats escalate, warns Espria

      June 27, 2025
    • Jeremy Hunt ‘made a mistake’ targeting non-doms, says shadow business secretary

      June 27, 2025
    • Small firms raise alarm over Companies House rule change forcing profit disclosure

      June 27, 2025

    Categories

    • Business (8,326)
    • Investing (2,074)
    • Politics (15,824)
    • Stocks (3,172)
    • 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