UK average house prices edged 0.4% to £280,660 in February from a month ago, even as higher interest rates impact “continue to impact the housing sector,” says Propertymark.
The number of home appraisals fell 7% month-on-month as gross mortgage advances and new lender commitments fell, says the estate agents’ body in its March report.
The Bank of England base rate has remained at 5.25% since last August and is expected to stay at this level when the Monetary Policy Committee meet next Thursday.
The Bank is battling to bring down inflation, at 3.2%, to its 2% target.
However, a slowdown in the property market may be taking hold as the spring ‘buying season’ begins, with UK house prices falling 0.4% in April, according to Nationwide data earlier this week.
Although Propertymark’s survey points to latent interest among homebuyers as potential buyers registered at estate agent offices rose 4% in March from the month before.
Propertymark chief executive Nathan Emerson says: “Demand increased within the residential sales sector, with the number of buyers registered and the number of viewings per property both increasing.
“On the supply side, new instructions decreased slightly. Stock levels also decreased but remain on par with the same period last year.”
On lettings, the report says tenant registrations at estate agent branches fell to 82 in March from 89 the previous month, “suggesting that demand is slowing. It is possible that ongoing legislative uncertainty and relatively high rents are contributing factors.”
However, it adds that despite tenant registrations slipping in March, “demand continues to outstrip supply, with around nine new applicants registered for each available property in March.”
