The UK property market is showing signs of ‘revival’, but asking prices ‘come under some pressure’

PUBLISHED: 9th Mar 2023

The housing market is starting to show some signs of improvement after the disastrous mini-budget of September with several indications that 2023 may become much more stable after a turbulent few months.

In a residential survey undertaken by the RICS UK in February, survey participants indicated that market conditions are improving, offering hope for the coming months after a UK wide sluggish start.

The new sales indicator in February improved from a net balance of -36% to -26%, however the average time taken to complete a sale is rising slightly and is  currently approaching 19 weeks.

In an additional question included in the latest survey RICS analysed the difference between ask and sales prices in the current macro climate. In the mainstream market covering prices up to £500k around 60% of respondents agreed that sales were being agreed at below average price, this moved to 70% for properties between £500k and £1million. .

Meanwhile, in a further report  Catherine Mann, a member of the bank of England’s monetary Policy committee has identified indications of a revival in the Uk’s property market. The observation from the member of the BoE’s MPC, which sets the base interest rate, follows Halifax announcing a rise in house prices in February at a time when mortgage rates are decreasing and lenders are offering more competitive rates.

Mann stated in an interview with Bloomberg TV “we see a reduction in mortgage rates from the high point last autumn, we see more competition in terms of products coming from various lenders”

That suggests to me that there is more revival in process as opposed to a continual downward momentum”.

Mann downplayed concerns over the potential impact of a market slump, noting that falls are coming off the back of a significant 28% increase in prices since the start of the pandemic

“there is some price depreciation, but it’s really not much compared to how much prices on average appreciated over the last couple of years” she said “We have to take into account what the starting point was”

According to Halifax, house prices rose by 1.1% last month, the second increase this year and by 2.1% from the previous year.

David Phillip  commented “improving consumer confidence, recent reductions in mortgage rates  and a continuing resilience in the employment market  are helping to stabilise prices following the falls of November and December”

If you are considering selling your home, and we are now approaching Spring which is the best time of year to sell, call David Phillip FRICS for a free market appraisal.

David Phillip Estate Agents, 86, Leeds Road, Bramhope, Leeds LS16 9AN, w: davidphillip.co.uk

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