Home costs fell by 1.2% between February and March, however stay 4.1% larger on an annual foundation

Official figures confirmed on Wednesday that the worth of the typical home value rose 4.1% within the yr to March then fell.

In March the typical home offered for £285,000, £3,000 decrease than a month earlier, nevertheless £11,000 larger in comparison with the identical month in 2022.

Over the yr the typical home value in England was £304,000 up 4.1% over the previous 12 months, in Scotland costs have been up 3% to £185,000, and in Wales costs went to 4.8% to £214,000.

Co-founder and CEO of Wayhome, Nigel Purves, commented, “We noticed a turbulent end to 2022 and a subdued begin to this yr the place home costs are involved and that is additional highlighted by the slower fee of home value development seen in March.

These cooling market circumstances might be welcomed by these struggling to get on the housing ladder, nevertheless, home costs nonetheless stay some 4.1% larger than they have been final yr and we’re but to see any inkling {that a} vital downturn is on the way in which.

Which means that the monetary hurdle of a mortgage deposit stays significantly excessive, to not point out the truth that consumers are additionally dealing with far larger borrowing prices.

Whereas it’s anticipated that right this moment’s discount within the fee of inflation ought to assist to stabilise the mortgage market, this minor enchancment to the affordability of shopping for will do little to assist these firmly priced out of the market to start with.”

Director of Benham and Reeves, Marc von Grundherr, commented, “At this time’s figures additional spotlight the sluggish begin to the yr with respect to deal with value efficiency.

Nevertheless, issues are definitely beginning to enhance and it’ll take a while earlier than an uplift in market exercise filters by to a rise within the fee of home value development.

With inflation easing and mortgage charges anticipated to fall, we should always see much more consumers enticed again to the market as we strategy what’s historically the busiest time of yr.

Because of this, we will count on the slower fee of home value development seen up to now this yr to kick up a gear as demand as soon as once more begins to exceed the provision of appropriate houses available on the market.

We count on to see the sleeping big of the London market begin to awaken because the yr progresses, having lay largely dormant throughout a lot of the pandemic market growth. We’ve seen robust curiosity from each home and worldwide consumers throughout the early levels of 2023 and as this curiosity converts into gross sales, a lift in market exercise ought to begin to drive the capital’s property values skyward.”

Managing Director of Barrows and Forrester, James Forrester, commented, “Having paused for breath following a marathon stretch of file home value development throughout the pandemic, we’re now seeing a extra measured efficiency from the housing market, however one we count on might be sustained over the course of the yr.

For these consumers at the moment sitting on the fence, the market is poised to blossom over the spring months and so they’re greatest suggested to behave sooner, reasonably than later, earlier than inventory ranges are depleted.”

Managing Director of Home Purchaser Bureau, Chris Hodgkinson, commented, “Whereas home costs have proceed to chill on a month-to-month foundation, they’re nonetheless up yearly and so any fears of a property market crash can now be put to mattress.

The market has weathered the quieter winter months and emerged from its seasonal slumber in what will be thought-about positive kind, all issues thought-about, with a seasonal uplift in exercise anticipated over the approaching months.

There stays a level of market turbulence and so consumers and sellers ought to proceed to tread with a larger diploma of warning, while additionally anticipating longer transaction instances and a heightened hazard of fall throughs.

Nevertheless, for individuals who can efficiently negotiate these potential potholes, property stays a really sound funding.”