Prices are currently within 5% of the previous peak reached in October 2022.
While month-on-month conditions typically show greater volatility, the 0.4% increase shown builds on the modest increase in the previous month, on the back of easing cost of living pressures for many households and the prospect of higher interest rates. It’s something. reduction by
e.surv says the Bank of England “could signal the beginning of a more significant and sustained recovery in market conditions”, possibly later this summer.
The report also noted that a general election had been held by the time of this announcement, which would further increase market confidence and lead to “lower uncertainty.”
Richard Sexton, director of e.surv, commented:
“Our data shows that conditions in the England and Wales market are improving and we expect them to improve further in the coming months. The average sale price for a home in England and Wales in June was 1,500 The price rose nearly 0.4% to £360,175, its strongest performance in almost a year.The price is now within 5% of its previous peak in October 2022. The month’s 1.6% decline was a complete improvement from May and the strongest performance since July 2023.
“There are, of course, regional stories within this. The 1.6% year-on-year decline in house prices seen across England and Wales has all but disappeared outside of London and the South East. We continue to lead the way in improving.”
“Going forward, given Labour’s victory, we should see further improvement in buyer sentiment as the government works towards delivering on its manifesto commitments. These are ambitious and will take time, but the creation of a number of new towns, green It includes a rethink of the Belt, mandatory targets for local authorities, a freedom to buy scheme and a pledge to reduce the stamp duty threshold for first-time buyers from April 2025.
“There is also the possibility that the Bank of England will take some action on interest rates, given the improving inflation situation, which should improve affordability for buyers.”
