Jackson-Stops comments on ONS Private Rents and House Price Data
Nick Leeming, Chairman of Jackson-Stops comments on the publication of the ONS Private Rents and House Price Data.
The ONS private rents and house prices data was published this morning (21 August) which showed that average UK house prices increased by 2.7%, to £288,000, in the 12 months to June 2024, the fourth consecutive month with an annual increase in prices.
Nick Leeming commented:
“Olympic fever spread to the housing market last month with today’s figures showing a further boost to house prices in July.
“With much of July underpinned by Labour’s landslide election victory, the market is riding on the coattails of a new political dawn.
“Nearly six weeks on from the election, with inflation holding steady and the base rate having been cut for the first time since 2020 – the hope is that this will lead to a softening in mortgage prices and will provide a rosier picture for the market’s trajectory.
“There is a new sense of confidence in the market and as a result buyer demand is slowly ticking up – last month we saw viewings increase by 15% across the Jackson-Stops network.
“The limited number of properties available compared to the level of demand will likely start to drive fierce competition from committed buyers, especially in popular commuter belt spots such as Dorking, Oxted and Woking. Currently, we have nine buyers chasing every listing on the market.
“The property market’s resilience can be pinpointed to the cyclical changes in people’s lifestyle and life stages requiring them to move, but what can hold activity back is affordability at the lower end of the market – this can cause chains to stall or stop altogether.
“Labour has committed to boosting housebuilding which would help to rebalance supply and demand and address the affordability gap for first time buyers.
“But, until spades start to hit the soil, sellers will continue to have the upper hand and house prices will naturally reflect this.”
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