Market returns to pre-Covid levels
According to the Home.co.uk Asking Price Index for April, it seems that the UK property market is on the road to recovery, with nominal price falls highly unlikely in the near term. This news is in contrast to the recent negative predictions in the property media.
Various indicators suggest that the market has returned to pre-COVID levels, with a typical time on market that is now lower than it was in 2019. While the total stock of property for sale remains lower than it was in the pre-COVID year, recent increases are showing encouraging signs. These factors show that activity in the market is similar to its state pre-pandemic, and this should encourage those looking to sell their property.
Prices have corrected to the new lending conditions, paving the way for the recovery that the market is currently witnessing. The North of England, Scotland, and Wales are showing remarkable annualized growth, despite the turmoil the market experienced towards the end of last year. While London, the South East, and the East are the weakest performing regions for now, this is expected to change in the future.
Buyer demand is being fuelled by mortgage rates that are very low compared to the rate of inflation, with 10-year fixed-rate mortgages available at under 4%. This favourable situation is likely to persist for a while, given that inflation remains above 10% (either CPI or RPI).
The annualised mix-adjusted average asking price growth across England and Wales is currently -0.3%, compared to 6.4% in April 2022. These figures suggest that the market is stabilizing, with price growth slowing down to a more sustainable level.
Overall, the outlook for the UK property market appears positive in the near term. While there are still areas that need to catch up to the rest of the country, the market's recovery is well underway, and this is good news for anyone looking to buy or sell property.