The latest ONS House Price Index, shows that average UK house prices increased by 3.5% in the 12 months to April 2023, down from 4.1% in March 2023.
MD of Real Estate at Shawbrook Emma Cox says the UK property market is navigating challenging conditions, including high interest rates, inflation, and reduced budgets
“While landlords may feel nervous, astute professional investors can seize opportunities in this situation. The decline in house prices presents a chance to diversify portfolios and strategically invest in properties. As a result, this influx of investment helps alleviate the shortage of high-quality rental properties, meeting the demand from renters who currently have limited options.
In April 2023 UK house prices increased by 0.4% on a seasonally adjusted basis and according to the ONS the average UK house price is now £286,000. ,
Chairman of Jackson-Stops Nick Leeming comments: “Today’s figures show a slight uptick month on month but continue to point to a modest market rebalancing after the rapid acceleration of house prices during the pandemic.
“The speed at which prices rose, and held, surprised almost everyone as only the most optimistic could have foreseen this outcome in March 2020. After a moment of pause, property values are finding their new normal as the pendulum swings back into the favour of buyers; but only just”.
Leeming says clear pockets of the market continue to be well insulated from wider mortgage turbulence. Beauty spots such as North Norfolk, the Cotswolds and parts of the West Country, alongside well-connected commuter villages, remain characterised by low supply and a healthy pipeline of cash from London buyers keen to make the move.
He concludes: “Whilst house prices may decline marginally across some areas as a as the year progresses the harsh reality continues to be that those at the lower end of the market will find themselves riding the biggest waves. First time buyers are faced with rising bills and dwindling deals, having to readjust their expectations.
“Both the Bank of England and the Government are acutely aware of the consequences of a high inflationary environment, but the tactic of rising interest rates alone may not yet be enough to turn the tide”.
