According to the latest House Price Index from e.surv, the average sale price for homes in England and Wales has seen a slight increase, though annual changes remain negative.
As of April, the average house price stood at £359,154, marking a modest rise of £127 from the previous month but still showing a 2.9% decline year-on-year.
Richard Sexton, director at e.surv, described the market’s condition as a “fragile recovery.” He said: “The average sale price in April is £18,920 lower, or 5%, below the peak reached in October 2022. However, it is crucially some £43,750—or 13.9%—higher than at the start of the pandemic in March 2020, over four years ago.”
Sexton also highlighted the impact of economic factors on the housing market: “The expectation that any Bank of England base rate cut is imminent is becoming an increasingly distant prospect. This pushed mortgage rates higher in April and has undoubtedly given some buyers’ pause for thought.”
With the general election approaching later in the year, Sexton anticipates that economic and political uncertainties might dampen buyer sentiment further, potentially affecting price growth. “So while increased competition from lenders has meant that the availability of mortgage finance has been good, going forward, we expect these factors to weigh on buyer sentiment over the coming months,” he added.
