UK realty: Home prices surge highest in 10 months
Real Estate

UK realty: Home prices surge highest in 10 months

In Britain, there had been a significant rise in the prices of homes put up for sale, marking the most substantial increase in nearly a year. This increase was attributed to the recovery of the housing market, which instilled confidence in sellers. Particularly, London witnessed the highest surge in demand, according to an industry survey released.

According to the survey conducted by property website Rightmove, asking prices for residential properties had increased by 1.5% in the four weeks leading up to March 9. This surge marked the strongest four-week increase in 10 months. However, despite this rise, prices remained approximately ?5,000 ($6,400) below their peak in May 2023. Comparatively, prices were 0.8% higher than they were a year earlier.

Tim Bannister, Rightmove's director of property science, noted that sellers were justified in feeling more confident and optimistic in the current year. Nevertheless, he pointed out that buyer affordability continued to be strained, and the persistent challenge of higher mortgage rates persisted.

Rightmove's assessment of buyer demand during the period between February 11 and March 9 indicated an 8% increase compared to the previous year, with sales rising by 13% annually. Despite these positive indicators, there were still signs of caution among buyers. On average, sellers took 71 days to secure a buyer, marking the longest duration for this time of year since 2019.

The demand for property in London outstripped that of other regions. This was attributed to people increasingly returning to their offices for work rather than continuing remote work from home. Additionally, home-buyers were encouraged by stronger wage growth and lower inflation rates, as observed by Rightmove.

Following a period of slowdown, the property sector in Britain had regained momentum in recent months. This was partly due to a decrease in mortgage interest rates, as there were expectations that the Bank of England would reduce borrowing costs throughout the year. However, there had been a recent increase in borrowing costs, as investors speculated that the BoE might delay rate cuts until the latter half of the year. Rightmove reported that the interest rate on a typical five-year fixed-rate mortgage had risen over the past five weeks from 4.54% to 4.84%.

In Britain, there had been a significant rise in the prices of homes put up for sale, marking the most substantial increase in nearly a year. This increase was attributed to the recovery of the housing market, which instilled confidence in sellers. Particularly, London witnessed the highest surge in demand, according to an industry survey released. According to the survey conducted by property website Rightmove, asking prices for residential properties had increased by 1.5% in the four weeks leading up to March 9. This surge marked the strongest four-week increase in 10 months. However, despite this rise, prices remained approximately ?5,000 ($6,400) below their peak in May 2023. Comparatively, prices were 0.8% higher than they were a year earlier. Tim Bannister, Rightmove's director of property science, noted that sellers were justified in feeling more confident and optimistic in the current year. Nevertheless, he pointed out that buyer affordability continued to be strained, and the persistent challenge of higher mortgage rates persisted. Rightmove's assessment of buyer demand during the period between February 11 and March 9 indicated an 8% increase compared to the previous year, with sales rising by 13% annually. Despite these positive indicators, there were still signs of caution among buyers. On average, sellers took 71 days to secure a buyer, marking the longest duration for this time of year since 2019. The demand for property in London outstripped that of other regions. This was attributed to people increasingly returning to their offices for work rather than continuing remote work from home. Additionally, home-buyers were encouraged by stronger wage growth and lower inflation rates, as observed by Rightmove. Following a period of slowdown, the property sector in Britain had regained momentum in recent months. This was partly due to a decrease in mortgage interest rates, as there were expectations that the Bank of England would reduce borrowing costs throughout the year. However, there had been a recent increase in borrowing costs, as investors speculated that the BoE might delay rate cuts until the latter half of the year. Rightmove reported that the interest rate on a typical five-year fixed-rate mortgage had risen over the past five weeks from 4.54% to 4.84%.

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