Average UK house price exceeds £250,000 but ‘market is starting to slow’ | house prices
The average price of a home in the UK topped £250,000 for the first time, but the proportion of sellers who have lowered their asking price and the time it takes to sell a home has increased, according to Zoopla’s latest market index.
The property company, which bases its monthly report on a mix of sold prices, mortgage valuations and agreed-upon sales data, said the average cost of a home was £250,200 in April, but the pace of price growth has been slowing.
Annual house price inflation fell from 9% in March to 8.4%, and Zoopla said it expects it to drop to 3% by the end of the year.
The housing market is “still busier than pre-pandemic standards,” Zobla said, but there are signs that a slowdown is on the way.
Since the second half of April, she said, the price of one in 20 drugs has fallen by 5% or more — an increase from one in 22 over the previous month.
Sellers were also usually waiting a little longer to make a sale. Outside London, the average time between a three-bedroom home for sale and the agreed-upon sale increased from 16 days in March to 18 days in April. In London, that average number rose from 17 days in March to 21 days in April.
“We expect this measure to continue to rise through the rest of the year as buyer demand levels begin to decline, with changing sentiment around the cost of living and personal finances,” said Gráinne Gilmore, Zoopla’s head of research.
Vincent Dennington, Director of Estate Agent John D Wood & Co said: “We are starting to see more and more price cuts on the property gates, which could be an early indication of a slowdown in the market.
“However, this may also be a sign that the properties were initially overpriced and are not generating any interest from potential buyers; therefore they need to be properly adjusted to ensure that the reduction leads to new interest and eventually offers.”
He added, “Currently, the market is still buoyant enough that if a property is put on the market at competitive prices, it is likely to create a multi-bid scenario, resulting in final offers bypassing the indicative price.”
Higher interest rates and increases in other cost of living thus far appear to have had little impact on the housing market, with all major price indicators showing price increases in April.