Late Spring Market
In what traditionally marks one of the busiest periods in the property calendar, this late Spring market has delivered some surprising contradictions. While overall activity has been noticeably quieter than expected, average asking prices have unexpectedly climbed to unprecedented heights across the UK.Unusual Transaction Volumes
This unusual combination of subdued transaction volumes alongside record-breaking prices signals a complex market dynamic that both buyers and sellers need to understand. Multiple factors are influencing this trend, from persistent housing shortages to shifting buyer preferences in the post-pandemic landscape.House Price Index
Average asking prices for newly listed homes have risen by 0.6% this month (+£2,335), reaching a new record high of £379,517. However, this is the smallest seasonal increase for this time of year since 2016, as a decade-high supply of homes on the market tempers price growth.The typically strong late spring market is showing signs of cooling after a particularly active first quarter. In addition to the modest price rise, buyer demand has eased, likely influenced by April’s stamp duty increase:
- Following an unusually busy March, new buyer demand dropped in April, falling 4% compared to April 2024.
- Despite the April dip, year-to-date demand remains 3% higher than last year, with early signs of recovery emerging in May.
New listings continue to rise, with 14% more properties coming to market compared to this time last year. As seller activity outpaces buyer demand, pricing realistically is becoming increasingly important to secure a sale.
Looking ahead, the recent cut in the Bank Rate may boost buyer affordability and market activity later this year. According to Rightmove’s mortgage tracker, the lowest available two-year fixed mortgage rate is now 3.72%, down from 4.75% a year ago.
(Source: Rightmove)