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Industry activity improves as house prices rise Posted On 07 May 2024

April saw a 1.1% increase in home prices over the same month last year

 

According to data from April, the average property price increased from £288,430 to £288,949 in only one month. The monthly price increase is 0.1%, whereas the quarterly change is 0.8%.

 

In April, UK property prices only increased by +0.1% (less than £200 in cash terms) on a monthly basis. Though this might be attributable to the base impact of weaker price growth around this time last year, annual growth increased to +1.1% from +0.4% in March.

 

Currently, the typical property costs £288,949, down from £287,244 at the beginning of the year. The truth is that average home prices have essentially plateaued in the early months of 2024, despite the fact that monthly price fluctuations are always being watched and some volatility is to be expected given the state of the market.

 

This is indicative of a home market that is still adjusting to increased mortgage rates. Homebuyers are becoming more confident as a result of a period of relative stability, even if borrowing costs are still higher than they were a few years ago. Greater numbers of mortgage applications this year indicate that activity and demand are growing, and at the industry level, mortgage approvals have reached their highest point in 18 months.

 

According to our most recent study, purchasers are also lowering their expectations; first-time buyers, in particular, are doing this to offset rising borrowing costs by choosing smaller residences. The value of flats increased the most in the first few months of this year, closing the "growth gap" on larger properties that had been present for the majority of the previous four years. This is reflected in the pricing of property.

 

 

#property #houseprices #mortgages

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