"There is a sense that some buyers and sellers are waiting for the first rate reduction before taking action, so a cut this summer could really give the housing market a boost."
- Mark Harris, chief executive of mortgage broker SPF Private Clients
Average UK house price annual inflation was 1.1% in the 12 months to April 2024, up from an increase of 0.9% in March, according to the latest UK House Price Index from the Land Registry.
Average house prices increased over the year by 0.6% in England, 0.4% in Wales, 4.5% in Scotland, and 4.0% in Northern Ireland.
Of English regions, annual house price inflation was highest in the North West, where prices increased by 3.8% in the 12 months to April. London was the English region with the lowest annual inflation, where prices decreased by 3.9%.
Prices increased by 0.3% between March and April, compared with a increase of 0.1% during the same period 12 months ago.
Amy Reynolds, head of sales at estate agency Antony Roberts, commented: “Negotiations are becoming an ever more central part of transactions. Buyers are more price-conscious, and sellers increasingly realistic about their pricing. This dynamic has created a balanced market where negotiations are frequent but transactions remain steady.
“We are cautiously optimistic for the second half of the year. If the election results provide a clear direction, we anticipate a surge in market activity as delayed transactions are completed. Confidence in the market is likely to rebound, potentially leading to a stronger performance in the latter half of the year.
“However, we have concerns around landlords exiting the market. We are seeing an increase in landlords requesting valuations on their properties, as they prepare to sell if there is increased pressure on them from the new government.
“The fundamental demand for property remains strong. Sensible pricing and realistic negotiations are key to navigating this period successfully.”
Mark Harris, chief executive of mortgage broker SPF Private Clients, added: “As expected, inflation has hit the 2% target, giving the Bank of England a further nudge to start reducing interest rates. If the Bank wants to be bold, that first reduction would come this month but more likely it will be August.
“There is a sense that some buyers and sellers are waiting for the first rate reduction before taking action, so a cut this summer could really give the housing market a boost.
“Although Swap rates were already falling before the publication of the latest inflation data, mortgage pricing is fairly flat with little movement up or down. There is a sense that things are on hold until the election is out of the way. Following a somewhat challenging first half of the year, there are hopes that a post-election bounce will lead to a more promising autumn for the housing market.”
