House prices edge upward as market shows signs of recovery

House prices edge upward as market shows signs of recovery

0:03 AM, 31st December 2024, About 4 days ago

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House prices in England and Wales saw a modest increase in November, rising 0.2% to an average of £358,800, e.surv reveals.

This marks the second consecutive month of price growth, signalling a potential shift in the housing market.

Despite the recent uptick, prices remain 1.5% lower than in November 2023.

House prices are still more than £20,000, or 5%, below the previous peak seen in late 2022.

However, the gap is narrowing, and the market is showing signs of increased activity, with October seeing the highest level of transactions in two years.

‘Average sale price’

The firm’s director, Richard Sexton, said “A second small increase in a row for November underlines the direction of travel for house prices for the holiday period.

“Falling interest rates have and will continue to support buyer affordability over the coming months and the imminent end of the current stamp duty reliefs in April of next year will increase buyer confidence and urgency respectively over the coming months.”

He added: “But these figures reflect buyer and seller activity before the Budget and so are founded on a robust job market that reflects low levels of unemployment and good pay and income increases that have buoyed sentiment.”

Concerns linger about economic climate

While the short-term outlook appears positive, concerns linger about the medium-term economic climate, e.surv says.

The Bank of England has highlighted the challenges faced by millions of borrowers as fixed-rate deals expire, potentially leading to increased mortgage costs.

The government’s commitment to building 1.5 million homes in England and its upcoming housing plan could provide further support to the market, particularly for first-time buyers.

Regionally, Northern England continues to outperform Southern England, with Yorkshire and the North West leading the way in price growth.

London and the South East, on the other hand, have experienced slower growth due to affordability pressures and sensitivity to mortgage costs.


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