Our monthly update on the UK housing market – covering sold and asking prices, current market sentiment as well as the property outlook for the year ahead.
HM Land Registry – Sold Prices
In the year to April 2022, UK house prices increased by 12.4%. Up from 9.7% in March, this represents another significant monthly increase. Indeed, on a non-seasonally adjusted basis, prices increased by 1.1% between March and April. This compares with a decrease of -1.3% the year before.
Growth was again strong in the Midlands and the South West of England. The South West was the fastest growing region though, with price rises of 14%. London sold prices grew at roughly half this pace, with increases of 7.9% in the year to April 2022.
Largely as a result of continued price rises and the ongoing imbalance between supply and demand, property transactions and mortgage approvals were both down on last year (by -12% and -4% respectively).
Nonetheless, the Bank of England reported a small increase in the number of properties available for sale across the UK. This meant a slight moderation of price increases across many areas of the UK.
Rightmove – Asking Prices
According to Rightmove data, average asking prices once again hit arecord high in June 2022. This takes average asking prices to £368,614, reflecting a rise of 0.3% (£1,113) from May.
Buyer demand remains incredibly strong however, up by 113% on the pre-pandemic five-year average for May. This too is starting to ease however, down by 8% between April and May.
With rate rises and the cost of living crisis impacting people’s daily lives, it’s likely that affordability constraints will influence the market. Alongside more choice (with available properties up by 7% compared with last year, but still below 2019 levels), asking price falls in the second half of 2022 are possible.
RICS – Chartered Surveyor Sentiment Survey
The latest RICS UK Residential Market Survey reports a slight drop in buyer demand (-7%) over May 2022. This brings eight previous consecutive positive monthly readings to a close.
Even so, property prices are still expected to rise, though the pace of growth is slowing. With market appraisals still in negative territory (-5%), any increases in the supply of new homes will be relatively modest. Given this limited supply, +73% of contributors reported price increases over May. This represents price increases across all areas of the UK.
A further 42% of survey participants expect house prices to rise over the twelve months ahead. Whilst firmly in positive territory, this reflects lessened confidence from the 78% reading of February 2022.
Zoopla – Housing Market Outlook
In their latest House Price Index, Zoopla reaffirm strong house price growth across the entire UK property market. In fact, the annual growth over the past couple of months is the highest witnessed since 2016.
Despite this (and reflecting trends identified by Rightmove and RICS), there are signs of market easing. Buyer demand is beginning to fall from record peaks seen earlier in the year.
Whilst the market is still moving quickly (with 1.2 million property transactions expected in 2022), the time between initial listings and agreed sales is also increasing. This reflects a return to more “normal” market conditions. With an uncertain economic outlook, interest rate rises and inflation on the cards, Zoopla predict gradually slowing market activity for the remainder of the year.
Express Index
For a full, comprehensive breakdown of current property market activity. Visit our Express Index here
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