Rise in average asking price marks an air of confidence in the UK property market
Cornerstone Tax comments on latest Rightmove data, which shows average asking price rise marks confidence in the UK property market.
New data published by Rightmove shows that the average asking price of UK property rose in May, more than in any other month this year. The average price of homes coming to the market jumped by 1.8% from April, above the average rise of 1.0% in May.
In light of this promising news, property expert and the Chairman of Cornerstone Group International, David Hannah, explains why he remains confident in the market and why we will see further growth in 2023.
At the start of 2023, experts forecasted British house prices were to fall by as much as 15% by 2024. But since then, the economy has proved to be more resilient than expected and has so far avoided predictions of a recession.
This has contributed to a better economic outlook and steadier mortgage rates, which has offset the impact of the Bank of England’s interest rate rise to 4.5%.
The renewed confidence in the market, Hannah believes, has encouraged a wave of buyers back to the market, increasing the number of sales agreed upon – Rightmove said buyer demand was 3% higher in May compared with the same month in 2019 before the coronavirus pandemic distorted the market.
Furthermore, encouragingly, the average number of properties on estate agent books rose slightly from 45 in April to 47 in May. Despite calls for a market crash from industry experts, Hannah maintains that considering these encouraging figures, the market will grow between 6-8% by the end of 2023.
David Hannah, Group Chairman of Cornerstone Group International, explains:
“The UK is going through a re-adjustment period regarding property prices and is slowly adapting to the new rates of mortgages.
“However, we are already beginning to see renewed stability due to the market’s resilience, which has resulted in a wave of buyers returning.
“The jump in new seller asking prices is a reaction and a sign of increasing confidence from sellers.
“One reason for this increased confidence may be that the negative start-of-the-year predictions for the market are looking increasingly unlikely.
“I predict that there will be no crash, and we won’t see a 7-10% fall in property prices that we saw in the noughties.
“Over 2023, I expect to see low to mid to single-digit growth in the UK property market.”
Kindly shared by Cornerstone Tax
Main article photo courtesy of Pixabay
