The average price of a property coming to the UK market rose by 0.8% (+£2,906) to reach £365,357 in March according to Rightmove’s latest House Price Index, with the homes at the top-of-the-ladder jumping by a staggering 1.2% alone.
According to property website Rightmove’s latest House Price Index, the average price of property in the UK market has increased by £2,906 this month and annual asking prices reaching +3.0% in the first quarter of 2023. While the average house price now sits at £365,357, the homes on the market at the top-of-the-ladder have reportedly increased the most in the last month, from £650,755 in February 2023 to £658,702 in March.
Properties with two bedrooms or fewer are leading the way as the market enters spring with sales agreed in this sector recovering the fastest and mortgage rates decreasing, allowing more people to enter the market as we enter Q2. Mortgage rates have fallen significantly from their peak last year, with the average rate for a 15% deposit five-year fixed mortgage now just 4.65% compared to last month’s 4.75% and October’s high of 5.89%. Following the decrease in mortgage interest rates, the OBR statement given last week states that inflation is expected to reduce quicker than anticipated and will reach 2.9% by the end of the year, which is 2.1% lower than originally forecast.
“The beginning of the spring season sees stability and confidence continuing to return to the market as it recovers from the turbulence at the end of 2022. While higher mortgage rates and economic headwinds raise challenges, many potential home movers who were effectively side-lined in the frenetic bidding wars of the last two years will find that a slower-paced market gives them time to plan and secure their next move as we enter the traditionally busy spring-buying season.” Tim Bannister, Rightmove’s Director of Property Science.‘‘
While house prices across the UK have increased compared to the previous year, nowhere was the year-on-year increase in value higher than in the North West and the North East which saw the change in average pricing increase by 4.7% in both regions, compared with the lows of the East of England, South East, and London, with their values only increasing by 1.8%, 1.8%, and 2.5% respectively.
As a leading UK developer and operator, at Beech Holdings we are well experienced with the profitability of the North West and how despite the average house price being £430,000 less in Manchester than the capital, the rental yields are higher, and the average days to sell a property is just 57 days compared to 70 in London.