House prices edge up in Yorkshire and a prediction for the rest of the year
Yorkshire saw house prices rise by 1.5 per cent over the past year bringing the average house price in our region to £207,166. The neighbouring North West saw the biggest rise in England with a 3.3 per cent annual rise taking the average house price to £231,599 while the North East saw 2.2 per cent rise pushing up the average home value to £172,538. The top performer was Northern Ireland with 3.4 per cent annual growth taking the average house price to £192,502.
Amanda Bryden, Head of Mortgages, Halifax, said: "“UK house prices held steady in April, rising on a monthly basis by just +0.1%, less than £200 in cash
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Hide Adterms. Annual growth rose to +1.1%, from +0.4% in March, though this can be attributed to the base effect of weaker price growth around this time last year.
“The average property now costs £288,949, compared to £287,244 at the start of the year. While there is always much scrutiny of monthly price changes and a degree of volatility is to be expected given current market conditions, the reality is that average house prices have largely plateaued in the early part of 2024.
“This reflects a housing market finding its feet in an era of higher interest rates. While borrowing costs remain more expensive than a few years ago, homebuyers are gaining confidence from a period of relative stability. Activity and demand is improving, evidenced by greater numbers of mortgage applications so far this year, while at an industry level mortgage approvals have reached their highest point in 18 months.
“Our recent research also found that buyers are adjusting their expectations, with first-time buyers in particular compensating for higher borrowing costs by targeting smaller properties. We see this reflected in property prices for the first few months of this year, with the value of flats rising most sharply, closing the ‘growth gap’ on bigger properties that’s existed for most of the last four years.
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Hide Ad“However, we can’t overlook the fact that affordability constraints are still a significant challenge for both new buyers and those rolling off fixed-term deals. Mortgage rates have edged up again in recent weeks, primarily as a result of expectations around future Bank of England base rate changes, with markets now pricing in a slower pace of cuts.
“If, as is still expected, downward moves in Bank Rate come into play later this year, fixed mortgage rates should fall. Combined with the resilience displayed by the housing market over recent months, we now expect property prices to rise modestly over the course of 2024.”
In response to the Halifax report Nathan Emerson, CEO at Propertymark, says: “Buyers and sellers are starting to accept the new reality of the housing market in the face of current interest rate levels and it is encouraging to see that house prices are increasing, giving sellers the confidence they need to put their house onto the market.”
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