Your monthly UK housing market update – including sold and asking prices, RICS surveyor sentiment and predictions for the year ahead.
HM Land Registry – Sold Prices
In the year to November 2022, UK house prices rose by 10.3%. This was a slight decrease from the 12.4% seen in October.
On a non-seasonally adjusted basis, UK house prices decreased by 0.3% between October and November 2022. This compares with an increase of 1.5% the previous year. Even so, this meant house prices were still £28,000 higher in November than the same period in 2021.
Price growth was strongest in the North West, with increases of 13.5% during November. At the other end of the spectrum, London was the English region with the lowest growth (6.3%), while Scotland saw rises of just 5.5%.
Over the month, higher borrowing costs and affordability pressures weighed heavily on first-time buyers. Linked to this, mortgage approvals decreased by 20% (to 46,100) between October and November. Even so, the number of residential transactions was still 13.3% higher than November 2021.
Rightmove – Asking Prices
After two months of falling prices, Rightmove report asking prices rose by 0.9% during January 2023. Reflecting an increase of £3,301, this brought average asking prices to £362,438.
This is the highest rise this time of year since 2020, bringing tentative signs of stability back to an unpredictable property market. Indeed, buyer demand was up by 4% compared with more “normal” pre-pandemic levels of 2019.
Estate agent enquiries also jumped by a massive 55% in the last two weeks of January, further suggesting a release of pent-up demand. In good signs for the balance of supply and demand, the number of property valuation requests (i.e., the first step to selling your home) was also high.
While average monthly mortgage payments continued to fall (with some deals now offering below 5%), first-time buyers are still feeling pressed. With further easing of interest rates likely though, more buyers might be tempted into the market.
RICS – Chartered Surveyor Sentiment Survey
In the latest UK Residential Market Survey, RICS Chartered Surveyors report falling buyer demand resulting in fewer agreed sales. In fact over December 2022, sales, instructions and price trends all slipped into negative territory.
The net balance for new buyer enquiries was -39% over the month, while the number of fresh listings was also negative at -23%. This was the weakest monthly figure since September 2021.
As a result, it’s no surprise that agreed sales were also down by -41%. This downward momentum happened across all parts of the UK, with Scotland, Wales, the North West and London showing the most subdued activity. -42% of respondents also noted a decline in house prices over December 2022.
At the twelve-month horizon, -42% of respondents similarly predict sales volumes continuing to decline. In terms of price predictions, -66% see these falling over the next few months with -57% forecasting a similarly downbeat picture at twelve months.
Zoopla – Housing Market Outlook
In Zoopla’s January 2023 House Price Index, they report an improving economic picture in recent weeks. Despite this, Zoopla also note the squeeze on household incomes is likely to have a very real impact on sales activity.
This could drive a certain amount of movement in the market, as people assess the costs of running their homes. The sizeable amounts of equity in property might also encourage movement (and downsizing) to release funds and cut energy bills.
In the short term, Zoopla predict further single-digit price falls over the coming months. Even so, the housing market is in relatively good shape to deal with any further economic headwinds – making larger drops unlikely.
Express Index
For a full, comprehensive breakdown of current property market activity. Visit our Express Index here
Are you thinking of putting your home on the market?
We specialise in helping you get more for your property. Quicker, easier and with less stress.
You can call us any time on 0333 016 5458 where we can provide help, guidance and support.
Instant valuation – get a free 32-page instant valuation report here
Video appointment – book a free, no-obligation 30-minute advice meeting with one of our experts here
Ready to instruct us? – locate and sign your agreement here