Average UK house prices rose for a fifth month in a row and hit a new record high of £368,614 in June, but the market is showing signs of cooling.
Despite the £1,113 cost rise between May and June, the 0.3% increase is the smallest since January, showing that the pace of price rises is starting to slow, according to property site Rightmove.
Buyers are currently being welcomed with more choice, as the number of properties coming onto the market is up by 7% compared to this time last year. However, this remains down by 11% when compared to the same time in 2019.
The exceptional pace of the market is easing a little, as demand gradually softens and price rises begin to slow, which is very much to be expected given the many record-breaking numbers over the past two years. When we look at the number of buyers contacting estate agents compared to 2019 or the pre-pandemic five-year average, demand is still very high compared to what was once considered normal,” Tim Bannister Rightmove’s director of property science.
“We’re hearing from agents that though they might have had slightly fewer enquirers for each property in recent months, they’re still seeing significant interest from multiple buyers and are achieving successful sales. Entering the second half of the year, we anticipate some further slowdown in the pace of price rises, particularly given the worsening affordability challenges that people are facing. We expect this to bring the annual rate of price growth down from the current 9.7% towards the 5% increase that Rightmove predicted at the beginning of the year.”
With an average asking price of £369,852, the borough of Merton is the cheapest in all of London. And it still experienced a 0.6% price increase against May.
Havering is at the opposite end of this list, as the most expensive area in London, beating Kensington and Chelsea. Houses coming to the market in this borough cost on average £1,455,674.
Bromley experienced the biggest rise between May and June, as house prices jumped 2.4% to £736,679.
It is currently taking 150 days to complete a purchase on average after agreeing a sale, 50 days longer than at this time in 2019.
“As for completion times, these are still frustratingly long. Short chains with good estate agents progressing them is certainly what we look for when negotiating with multiple buyers these days. My expectation of the near future is that things will continue as they are for the coming months,” Oliver Gill, director at Kirkham Property in Oldham, said.
“There are simply too many buyers wanting to purchase, so there would need to be a huge shift in either increased stock levels and/or much lower buyer demand to correct the market,” he added.
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