Average UK home price hits record high for fifth straight month

The average price tag on a home has hit a record high for the fifth month in a row. Across the UK, the average asking price in June is £368,614, Rightmove said.

The property’s website said prices have risen 0.3% month-on-month, or £1,113 on average, as the pace of price increases slows. Despite the hike in interest rates and rising cost of living, buyer demand for available properties remains very strong, it said.

But it added that after a very strong first half of the year, it is likely that the lack of affordability will have a greater impact on market behavior in the coming months. This, along with more options coming into the market for buyers and general seasonal changes, means there is likely to be some month-to-month price drops during the second half of the year, Rightmove predicts.

Tim Bannister, Director of Property Science at Rightmove, said: “Entering the second half of the year, we expect some further slowdown in the pace of price growth, especially given the worsening affordability challenges that people are facing. “We expect this to bring an annual rate of growth of 5%, down from the current 9.7% that was predicted at the beginning of the year.”

Rightmove said it currently takes about 150 days to complete a purchase on average after agreeing to a sale — 50 days more than at this time in 2019. There are over 500,000 homes that are currently sold under contract, which is a 44% increase. This was 39% higher than at this time in 2019 and above the pre-pandemic five-year average.

The report quoted Oliver Gill, director of Kirkham Properties in Oldham, Greater Manchester, as saying: “The market is still performing well and many properties are still selling above asking price, albeit within six weeks from last month. We have seen a slight downturn. This could be due to more assets coming into the market that we are starting to see and the current imbalance between higher buyer numbers and fewer stocks has corrected itself so little.

The average asking price for a home this month is 0.3% or £1,113 higher than in May
(Image: PA Wire / PA Images)

“Another reason for this could be some change in market sentiment based on rising cost of living.” The Rightmove report was released as EY ITEM Club said it expects UK home prices to increase by 8% during 2022, followed by 1.8% in 2023 and 1.2% in 2024.

Peter Arnold, chief economist at EY UK, said: “In previous economic cycles, a house price contraction would be on the cards with earnings and a high probability of a market correction after two years of out-sized growth. Instead, House prices are set for a soft landing.”

He continued: “Rising interest rates are unlikely to affect homeowners in the same way they did before, with the dominance of fixed-rate mortgages, meaning rate changes for borrowers to filter through. It will take some time. Importantly, the economy is also not up, given the high level of unemployment that has been a major factor in the contraction in house prices in the past.”

Another report released Monday from the Yorkshire Building Society found that three in five (59%) people believe their current home does not meet their needs, or only meets some . According to the Housing UK report, nearly a quarter (23%) of downsizers who were looking to move to smaller properties in later life pointed to a lack of suitable or available supply as the biggest barriers to relocating. did, which used a survey. More than 1,700 people across the UK in April.

Nitesh Patel, economist at Yorkshire Building Society, said: “The demand for housing has far exceeded supply for years, but it is not just the lack of homes, but the type and suitability of properties that are on the market – whether new or existing homes. “

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