Housing Market Recovers in June, Prices Near Pre-Peak LevelsHousing Market Recovers in June, Prices Near Pre-Peak Levels The latest house price index from e.surv reveals a positive uptick in the housing market during June. Despite a modest 1.6% annual decline, average house prices rose to £360,175, fueled by a 0.4% month-over-month increase compared to May. Encouragingly, home prices are now within 5% of their previous peak reached in October 2022. Richard Sexton, director at e.surv, commented, “Our data indicates an improving market outlook in England and Wales, which we anticipate will continue in the coming months.” Sexton highlighted the significant performance in June, with an average selling price increase of almost £1,500 (0.4%) to £360,175, marking the strongest growth in nearly a year. However, Sexton acknowledged regional variations, with the 1.6% year-on-year decline in England and Wales being significantly influenced by London and the South East. In contrast, the North East and Wales have witnessed notable improvements in house price performance. Looking ahead, Sexton expressed optimism driven by Labour’s victory and their manifesto promises, which include creating new towns, rethinking the green belt, and reducing stamp duty thresholds for first-time home buyers. Furthermore, Sexton anticipates action from the Bank of England on interest rates, given the improving inflation picture, which is expected to enhance affordability for home buyers.
Data from the latest house price index from e.surv shows that the housing market received a positive boost in June.
Prices were down just 1.6% on a year ago, with the average house price at £360,175.
While this figure marks an annual decline, house prices rose 0.4% month-on-month in June compared to May.
In addition, home prices were within 5% of the previous peak reached in October 2022.
Richard Sexton, director at e.surv, said: “Our data shows an improving picture for the market in England and Wales and we expect this to improve further in the coming months.
“In June, the average selling price of a house in England and Wales rose by almost £1,500 (0.4%) to £360,175, the strongest performance in almost a year.
“The 1.6% decline in June was a full percentage point improvement from May and the strongest performance since July 2023.”
He added: “Of course there are also regional stories.
“The 1.6% year-on-year fall in house prices in England and Wales almost disappears if we exclude London and the South East.
“The North East and Wales continue to lead the way in improving house price performance.
“Looking ahead, in light of Labour’s victory, we expect further improvements in buyer confidence as the government aims to deliver on its manifesto promises.
“These are ambitious and will take time, but include the creation of several new towns, a rethink of the green belt, mandatory targets for local authorities, a Freedom to Buy scheme and a commitment to lower the stamp duty threshold for first-time home buyers by April 2025.
“We can also now expect action from the Bank of England on interest rates, given the improving inflation picture, which will improve affordability for buyers.”
