House prices 3.3% lower than a year ago

House prices

Average house price in England & Wales now at £356,014, down 0.2% on April, down 3.3% annually, says e.surv

A major housing index claims house prices are, on average, almost 3.3% lower than a year ago but with the North East the first region to move out of negative territory.

Average house price in England & Wales are now at £356,014, down 0.2% on April, down 3.3% annually, says e.surv.

Director Richard Sexton says: This month, the average sale price of a home in England and Wales in May dropped by just more than £600 (0.2%) to £356,014 which is nearly £12,000, or 3.3, lower than a year ago. Prices are now £23,000 (6.1%) below the high touched in October 2022, but they still remain nearly £40,000 (13%) higher than at the start of the pandemic in March 2020.

The pushing back of previously expected interest rate cuts by the BoE and the subsequent upward repricing of mortgage rates by lenders has meant any anticipated help for borrowers has been short-lived. Fewer buyers, of course, have an impact on prices which we can clearly see being played out at a regional level, he added.

A real north south divide has opened up. London, the South East, and East of England are the regions with the weakest price trends and continue to struggle, reflecting the much higher house price levels, affordability challenges and greater reliance on mortgage finance in these regions – factors that really impact FTBs whose prospects of buying have been facing headwinds for years now, he said.

e.surv says that over the past month there has been a mix of good news and less good news.

He added: The picture on inflation was less positive than expectations and this pushed back the expected date for the start of cuts in the Bank rate. This was then reflected in some slight hardening in mortgage rates. At the same time underlying sentiment in the residential market remained positive and listings of homes for sale were rising. Consumer confidence was up and seasonally adjusted transactions also increased in April. There is a general consensus that the housing market is continuing to recover although still subject to “monthly buffeting”.

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