Home costs fell by 1.2% between February and March, however stay 4.1% increased on an annual foundation

Official figures confirmed on Wednesday that the value of the common home value rose 4.1% within the 12 months to March then fell.

In March the common home bought for £285,000, £3,000 decrease than a month earlier, nevertheless £11,000 increased in comparison with the identical month in 2022.

Over the 12 months the common home value in England was £304,000 up 4.1% over the previous 12 months, in Scotland costs had been up 3% to £185,000, and in Wales costs went to 4.8% to £214,000.

Co-founder and CEO of Wayhome, Nigel Purves, commented, “We noticed a turbulent end to 2022 and a subdued begin to this 12 months the place home costs are involved and that is additional highlighted by the slower fee of home value development seen in March.

These cooling market circumstances might be welcomed by these struggling to get on the housing ladder, nevertheless, home costs nonetheless stay some 4.1% increased than they had been final 12 months and we’re but to see any inkling {that a} important downturn is on the way in which.

Which means the monetary hurdle of a mortgage deposit stays significantly excessive, to not point out the truth that consumers are additionally going through far increased borrowing prices.

Whereas it’s anticipated that right this moment’s discount within the fee of inflation ought to assist to stabilise the mortgage market, this minor enchancment to the affordability of shopping for will do little to assist these firmly priced out of the market to start with.”

Director of Benham and Reeves, Marc von Grundherr, commented, “Right this moment’s figures additional spotlight the sluggish begin to the 12 months with respect to accommodate value efficiency.

Nevertheless, issues are definitely beginning to enhance and it’ll take a while earlier than an uplift in market exercise filters via to a rise within the fee of home value development.

With inflation easing and mortgage charges anticipated to fall, we must always see much more consumers enticed again to the market as we method what’s historically the busiest time of 12 months.

Consequently, we are able to anticipate the slower fee of home value development seen thus far this 12 months to kick up a gear as demand as soon as once more begins to exceed the provision of appropriate properties available on the market.

We anticipate to see the sleeping large of the London market begin to awaken because the 12 months progresses, having lay largely dormant throughout a lot of the pandemic market increase. We’ve seen robust curiosity from each home and worldwide consumers in the course of the early phases of 2023 and as this curiosity converts into gross sales, a lift in market exercise ought to begin to drive the capital’s property values skyward.”

Managing Director of Barrows and Forrester, James Forrester, commented, “Having paused for breath following a marathon stretch of file home value development in the course of the pandemic, we’re now seeing a extra measured efficiency from the housing market, however one we anticipate might be sustained over the course of the 12 months.

For these consumers at the moment sitting on the fence, the market is poised to blossom over the spring months and so they’re finest suggested to behave sooner, slightly than later, earlier than inventory ranges are depleted.”

Managing Director of Home Purchaser Bureau, Chris Hodgkinson, commented, “Whereas home costs have proceed to chill on a month-to-month foundation, they’re nonetheless up yearly and so any fears of a property market crash can now be put to mattress.

The market has weathered the quieter winter months and emerged from its seasonal slumber in what could be thought of fantastic kind, all issues thought of, with a seasonal uplift in exercise anticipated over the approaching months.

There stays a level of market turbulence and so consumers and sellers ought to proceed to tread with a better diploma of warning, while additionally anticipating longer transaction occasions and a heightened hazard of fall throughs.

Nevertheless, for many who can efficiently negotiate these potential potholes, property stays a really sound funding.”