In August, the average sale price of a home in England and Wales was just over £356,000 – nearly £1,800 or 0.5% lower than the July average, data from e.surv’s House Price Index has revealed.
On an annual basis, average prices in August were about 2.6% lower than a year ago.
While this represents a modest improvement on where we were in late 2023, prices have yet
to move onto a more convincingly upbeat trajectory.
Prices for England and Wales as a whole remained about 6% below the previous peak reached in
October 2022.
Richard Sexton, director at e.surv, said: “The England & Wales data, which include cash purchases, illustrate that while the base rate cut in August was welcome, it has not transformed the picture for those wanting to move home.
“Affordability remains an issue for many potential buyers still adjusting to mortgage rates now based on expectations of slower Bank of England interest rate cuts.
“When the market sees another cut in due course we should expect that to feed into buyer confidence and increase the downward pressure on mortgage rates and, as importantly, ease lenders’ mortgage stress tests.”
He added: “The Government’s commitment to new housing is welcome but the supply of stock remains tight and this will be the case for some time yet.
“The lack of supply will support the prices of the right kind of property, lifting averages more generally.
“Looking forward, we should expect the prices to pick up. Buyer registrations are growing and we should also expect borrowing rates to improve.
“Lower interest rates will we think further support house prices over the coming months and hopefully be enough to offset any potential headwinds buyers may encounter in October’s budget.”
