The UK housing market is picking up, with more homes for sale on the market and asking prices expected to rise during the second half of the year. This means that buyers and sellers can enjoy a level of stability that has not been achieved since before the pandemic.
The BuyAssociation reports that the vast majority of homes on the market are achieving near the asking price (96.8 per cent), and the number of sales agreed are up 16 per cent compared to this time last year. However, estate agents in London report that the capital is bucking the trend, with the average home selling below the asking price.
According to The Evening Standard, buyers in London are paying on average 96 per cent of the asking price, amounting to a discount of £27,000 on the average property. This is out of keeping with the trends in the rest of the country, but may benefit first time buyers who will find it easier to afford a home in the capital.
Londoners have been hit particularly hard by the hike in mortgage rates, paying on average £7,500 more per year when their previous deals came to an end. However, London house prices are expected to grow by modest amounts during the rest of the year.
New house building programmes announced by the government should also help to promote further stability in the housing market and make it more accessible for first time buyers and those looking to upsize or downsize.
Nathan Emerson, CEO of Propertymark, said: “It is fantastic to see further positivity and confidence returning to the housing market, and now that the general election is out of the way and we have a promise of 1.5m new homes across the next parliamentary term, we should start to see even more confidence and affordability across the sector.”
He added: “Propertymark is keen to see a ‘connected communities’ approach applied with the supply of new homes and one that delivers the right homes in the right areas at the right time, while paying extreme attention to ensuring available land is utilised ahead of any move on greenbelt areas.”
It is expected that the Bank of England will announce a cut in interest rates over the next few weeks, which will help to bring down mortgage rates and stimulate more activity in the housing market.
Speaking to The Guardian, Simon Gerrard, a former president of the National Association of Estate Agents, said: “Inflation has held steady at the Bank of England’s target of 2%, so there is a strong chance that the base interest rate will come down in August or September, which will fire the gun on property searches that have been on hold.”
It is anticipated that second and third time buyers who have been holding off upsizing will feel more confident to enter the market this year.
