According to new data from a leading property website, house prices have remained stagnant in recent weeks, but the overall market remains stable. Rightmove reported 0% growth in the four weeks to June 8th, compared to the previous month. The average price of a property coming to the market was £375,110 during this period, only a £21 drop from May’s record high of £375,131.
While this may seem like a statistically insignificant decrease, it is worth noting that year-on-year prices have still increased by 0.6%. Despite the flat figures, Rightmove stated that market activity has remained largely steady. The property website also noted that the upcoming general election seemed to have had a limited impact, as most buyers and sellers have continued with their plans after it was called.
Separate figures from lenders in recent months have also shown that prices have either remained flat or slightly risen since the beginning of the year. Industry experts attribute this to ongoing affordability pressures, such as high mortgage rates, which have dampened demand. However, they anticipate that prices and activity will pick up as the year progresses.
A spokesperson for Rightmove commented on the data, stating that it suggests “activity is largely remaining stable” despite the general election being called. They added that the number of sales being agreed and the number of buyers sending enquiries to agents has remained steady. The vast majority of those already in the home-moving market have also continued with their plans.
However, the spokesperson did note that there may be some election caution among potential sellers, particularly in the top end of the market. These individuals may be pausing their plans to see how the next few weeks unfold.
Nathan Emerson, chief executive of estate agents’ body Propertymark, expressed positivity towards the stability in the housing market. He stated, “It’s extremely positive to see stability within the housing market and despite a challenging period of high inflation and elevated interest rates, we are witnessing people approach the market with growing confidence.” Emerson also noted that a potential cut in interest rates would further drive demand by unleashing a “raft of competitive mortgage deals”.
The Bank of England’s decision on interest rates is set to be announced this Thursday lunchtime. However, most experts do not believe that the Bank will reduce interest rates just yet. They expect them to be held at 5.25% for a seventh consecutive time.