The housing market has continued to perform well in June, with house prices still rising and mortgage rates gradually starting to ease. While there are still some economic uncertainties, confidence is continuing to improve, giving both buyers and sellers more reason to feel positive.
House prices and mortgage rates
The latest figures from Zoopla show that UK house prices are 1.4% higher than they were a year ago. That’s a sign the market is continuing to grow at a steady pace, rather than seeing the sharp rises or falls we’ve experienced in the past.
Zoopla also reports that average mortgage rates have started to ease, falling from around 5% in April to 4.8% in June. Lower mortgage rates are making moving more affordable for many buyers, helping to boost activity across the country.
Nationwide’s latest House Price Index tells a similar story, with annual house price growth increasing to 2.2% in June, up from 1.7% in May, while prices stayed broadly the same month on month.
Although prices haven’t changed much month on month, that’s not necessarily a bad thing. A more stable market gives buyers and sellers more time to make decisions and creates a healthier balance between supply and demand.
While mortgage rates are still higher than they were a few years ago, there are now more competitive deals becoming available. These changes could help more buyers return to the market as borrowing costs fall. This could increase choice and encourage people who had delayed moving to start looking again.
Regional differences
One thing that’s always worth remembering is that the national picture doesn’t tell the whole story.
According to Nationwide, Northern Ireland continues to see the strongest annual house price growth at 8.6%, while the Outer South East has seen much slower growth of 0.1%.
The North West continues to be the best-performing region in England with house prices up 3.9% on the previous year.
Demand continues to be strongest in more affordable areas across the UK, where homes offer better value for money.
Local knowledge remains important when putting your home on the market, as realistically priced homes are continuing to sell at a similar pace to last year. The market in your area may look very different from the national headlines.
More choice for buyers
With more homes on the market than this time last year, buyers have more choice of properties. While this is good news for those looking to move, sellers need to make sure to price their home realistically to secure a successful sale.
Looking ahead
Overall, June has been another positive month for the property market.
House prices are continuing to rise, although at a slower pace. Current trends suggest growth is likely to remain strongest across the North of England, while areas such as London and the South East may continue to see more modest changes.
There are still factors to watch, including inflation, the wider economy and future Bank of England decisions, all of which could influence the housing market over the coming months. If inflation continues to ease, mortgage rates may continue to improve, helping make moving home more affordable for buyers.
