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.
Author:
Founder and mortgage and protection adviser in Albion Financial Advice
Dariusz Karpowicz is a seasoned adviser in the financial services industry. After gaining valuable experience working with an established broker, he founded his own practice, Albion Financial Advice. This firm is dedicated to assisting clients in acquiring properties and advising on various mortgage options. Born and raised in Gdańsk, Poland, Dariusz moved to the United Kingdom in 2006.
Book a FREE initial consultation