House prices up but deals for savvy landlords

The average price of property coming to the market rises by 0.8 per cent this month to £365,357, reports Rightmove.

This is below the average monthly rise of 1.0 per seen in March over the last 20 years, reflecting a higher degree of pricing caution by many new sellers than is usually seen at this time of year. 

Overall, new seller asking prices are now £5,800 below October 2022’s peak, with annual price growth continuing to ease and now at 3.0 per cent.

The portal says its data continues to point to a market on a much more stable footing than many anticipated and cautiously transitioning towards the activity levels of the more normal market of 2019.

“The beginning of the spring season sees stability and confidence continuing to return to the market as it recovers from the turbulence at the end of 2022” says Rightmove spokesperson Tim Bannister.

“The pace of the market reached an unsustainable level in the last two years, and was on track to slow to a more normal level, though the speed of this slowdown to more normality was accelerated by the reaction to September’s mini-Budget. 

“While higher mortgage rates and economic headwinds raise challenges, many potential home movers who were effectively side-lined in the frenetic bidding wars of the last two years will find that a slower-paced market gives them time to plan and secure their next move as we enter the traditionally busy spring buying season.”

Typical first-time buyer type properties (two-bedrooms and fewer) are leading a cautious recovery, with sales agreed in this sector improving fastest. In the last two weeks, agreed sales are just 4.0 per cent behind the same period in the more normal market of 2019.

By contrast and highlighting the current hyper-local and market sector differences, sales agreed in the last two weeks in the more discretionary top-of-the-ladder and second-stepper homes sectors are 10 and 13 per cent behind the same period in 2019 respectively.

Bannister continues: “Lagging sales agreed in the larger homes sectors are likely to be caused by a combination of factors including fewer pandemic-driven moves to bigger homes, a more cautious approach to trading up due to the cost of living, and even perhaps concern over the running costs of a larger home. 

“Meanwhile sales in the first-time buyer sector are likely being helped by some deposit assistance from family. The differing performance of smaller and larger homes highlights the multi-speed, hyper-local market. 

“Sellers looking to take advantage of traditionally strong buyer interest during the spring moving season should seek the expertise of a local estate agent, who will have their finger on the pulse and be best placed to advise on their local market.”

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