Winter is over and the usual burst of life in the property market that comes with the arrival of Spring doesn’t seem to have totally disappeared, despite almost daily speculation by commentators that prices are at risk of a serious decline. According to Rightmove’s House Price Index, house prices in the UK have risen by 0.2%, which is just below the national average of 1% in the month of April for the last two decades, but a far cry from downward expectations. Many economists were predicting a drop, and leading agents such as Knight Frank and Savills have been predicting a 10% fall in house prices; so an increase, no matter how small, is of comfort to homeowners and investors.
April can often be the busiest month for the housing market and with this, sellers often feel they are able to price slightly higher at this time of year. Yet, given the current climate, a relatively small increase could highlight the fact that homeowners are being careful to not over-price properties, so as to avoid them sitting on the market for a long time, having countless price reductions and putting potential buyers off any offers. Estate agents, advising their clients, are finally being more cautious (realistic) on their market valuations after a post-pandemic boom.
It may be a Spring boost preventing a downward trend, but as the market adjusts to higher interest rates and increased energy prices, and in recognition that we remain desperately short of suitable housing, a crash is looking less certain. Prices look likely to remain stable, on the back of a nation of aspiring homeowners and buyer demand (up 6%).
If you are looking to sell, now might be the time to start the process and get onto the market at a time when more buyers are actively looking.