Albion Financial Advice > News > UK Housing Market Blossoms! A Gentle Surge in Home Prices!
House pricing UK

In a refreshing turn of events, the UK’s housing market is showing signs of life, with home prices experiencing a modest yet meaningful uptick – the most notable rise in nearly a year!  While not exactly soaring, this positive trend is a beacon of hope for sellers, particularly in London, where the buzz is all about rising demand.

Rightmove’s latest findings reveal a 1.5% increase in asking prices for homes in the four weeks up to March 9, marking the most significant four-week growth spurt in 10 months. Although we’re still a whisker away from the peak prices of May 2023, down by roughly £5000, the current momentum is a reason to smile.

Year over year, we’re looking at a comforting 0.8% hike in prices.

Tim Bannister, Rightmove’s director of property science, brings a dose of reality, “It’s heartening to see sellers gain optimism this year. However, buyers are still navigating a tricky landscape with stretched affordability and looming higher mortgage rates.”

Demand isn’t just whispering; it’s speaking up, with an 8% jump in buyer interest from Feb. 11 to March 9 compared to last year, and sales have surged by 13% annually. Still, patience is the name of the game for sellers, as homes are taking an average of 71 days to attract a buyer – the longest period for this season since 2019.

London stands out from the crowd, with demand outstripping other areas. Thanks to a return to office life, stronger wage growth, and reduced inflation, the capital’s housing market is on a gentle upswing.

Following a cooldown, Britain’s property sector is warming up again, spurred by a drop in mortgage interest rates amid anticipation of cuts by the Bank of England. However, with borrowing costs on the rise again, the landscape remains dynamic, with the rate for a typical five-year fixed-rate mortgage climbing to 4.84% from 4.54% in the past five weeks.

The message is clear: the UK housing market is nurturing growth, offering a glimmer of hope amid challenges. For those on the hunt for a new home, it’s time to stay alert and financially savvy as the market evolves.


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