+
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%.

Related Stories

Gold Stories

Next Story
Infrastructure Transport

Mumbai-Ahmedabad Bullet Train’s Surat-Vapi Section Set for 2027

The first section of the Mumbai-Ahmedabad Bullet Train corridor, linking Surat and Vapi, is targeted to begin services in 2027. Construction is expected to be completed by December 2026, while Railway Minister Ashwini Vaishnaw has indicated that an inauguration could take place around the middle of 2027. The National High Speed Rail Corporation (NHSRCL) said the train being manufactured in India is expected to reach the tracks around April or May 2027. The train will undergo extensive testing before the section is opened for passenger services. The project began construction in 2021 and includ..

Next Story
Infrastructure Transport

Indian Railways Approves Four Projects Worth Rs. 7.36 bn Across Four States

Indian Railways has approved four projects with a combined value of Rs. 7.36 bn across Uttar Pradesh, Maharashtra, Andhra Pradesh and Gujarat. The programme covers train protection, signalling, electric traction supply and a road overbridge, with each project assigned to a different railway zone. In Uttar Pradesh, Rs. 2.52 bn has been approved to extend the Kavach 4.0 automatic train protection system across 607.7 km in the Lucknow Division of North Eastern Railway. The system monitors train movements and can apply the brakes if a driver fails to observe a signal or exceeds a safe speed. The w..

Next Story
Infrastructure Urban

Chandru Raheja Sells 1.49% Stake in Mindspace REIT for Rs. 5 bn

Billionaire Chandru Lachmandas Raheja has sold a 1.49 per cent holding in Mindspace Business Parks REIT for Rs. 5 bn through a bulk deal on the BSE. The transaction involved 9.9 mn units and was executed at an average price of Rs. 505 per unit, according to exchange data. Following the sale, units of Mindspace Business Parks REIT were trading 0.18 per cent lower at Rs. 504.05 on Tuesday. Exchange data did not identify the buyers involved in the transaction. Raheja is the chairman of real estate company K Raheja Corp. The sale involved 99,00,990 units, representing 1.49 per cent of the Mumbai-b..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code