House prices show improvement amid interest rates cut

House prices show improvement amid interest rates cut

0:01 AM, 19th July 2024, About 5 months ago

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The housing market shows promising signs of improvement, according to new data.

The Acadata House Price Index for June reveals that house prices are just 1.6% lower than a year ago, now standing at £360,175.

Acadata says a Labour government and the Bank of England potentially cutting interest rates will help boost the housing market.

Housing market remains strong

Richard Sexton, director at e.surv, says the last month has been positive for the housing market.

He said: “Our data shows an improving picture for the market in England and Wales and one that we expect to further improve over the coming months.

“In June, the average sale price of a home in England and Wales climbed by nearly £1,500 (0.4%) to £360,175. This is the strongest performance for nearly a year. Prices are now within 5% of the previous peak reached in October 2022.

“June’s 1.6% decrease was a full percentage point improvement on May and the strongest performance since July 2023. Of course, within that there are regional stories.

“The 1.6% year-on-year decrease in house prices seen across England and Wales almost disappears if we exclude London and the South East. The North East and Wales continue to lead the charge in improving house price performance.”

Government sets out to deliver on its manifesto pledges

Mr Sexton adds a Labour government will help the property market.

He said: “Going forward, in light of the Labour win, we should see further improvements in buyer sentiment as the government sets out to deliver on its manifesto pledges.

“These are ambitious and will take time but include creating a number of New Towns, rethinking the green belt, mandatory targets for Local Authorities, a Freedom-to-Buy Scheme, and a pledge to lower the stamp duty threshold for first-time buyers in April 2025.

“Also, we may now see action from the Bank of England on interest rates, given the improving inflation picture, which will improve affordability for buyers.”


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