The latest data reveals that residential Property prices are persistently falling, yet transactions exceed the long-term average, partly stimulated by an influx of buy-to-let landlords exiting the market.
New statistics from Zoopla show landlords putting their homes up for sale are bolstering supply, representing 11% of properties currently on the market. This trend is emerging as a considerable number of property investors grapple with profitability issues amid increasing mortgage rates and energy bills.
“Sellers should maintain a level-headed approach despite the more upbeat data on the housing market. They need to set realistic prices if they’re serious about relocating in 2023,” advises Richard Donnell, Executive Director at Zoopla. He adds that, “Home buyers remain price-conscious, keeping a watchful eye on the economic outlook, living costs, and the trajectory of mortgage rates, which appear set to rise marginally in the weeks ahead.”
These trends surface as the average UK home price has climbed by 1.9% year-on-year, now standing at £260,000. However, this increase conceals a 1.3% decrease in the average house price over the past six months.
In London, property prices have dipped by 0.2% year-on-year, with the average home in the capital now valued at approximately £523,000.
Guy Gittins, CEO of Foxtons, offers his perspective: “The dynamic for sales has bounced back far more robustly than many predicted at the year’s outset, following a period of inactivity after the government’s mini budget.”
He further explains that “This demand for London property stems from the backlog of buyers with pressing needs who were intending to move post-COVID-19. The demand was so significant that it remains unfulfilled, despite the rising cost of purchasing. Furthermore, given the stark imbalance of supply and demand in the lettings market, more renters able to buy are expediting their searches.”
Gittins adds, “The influx of new buyers has consistently driven viewing numbers higher than any point in the past six years. In fact, our buyer numbers to date this year are closely mirroring those at the same time last year, widely considered to represent the most vibrant market we’ve seen since 2016. Our expanding business pipeline leads us to anticipate a continued positive trend for the remainder of this year.”
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