By House prices saw a springtime boost in April, rising 1.1 per cent on a month-on-month basis, according to a new survey by Rightmove. This is compared to a 0.4 per cent increase in the month of March. Year-on-year, prices are down by 0.1 per cent.
This monthly increase was the largest monthly rise in the springtime since 2016, according to Rightmove. The previous month had been marked by uncertainty over the outcome of Parliamentary votes over Brexit.
News of a recovery in average house prices comes after data from Savills suggested the prime property market in London was showing signs of a recovery itself.
Prices rose faster in April, during a month in which Prime Minister Theresa May was granted an extension of Article 50 until 31st October 2019.
Easter bounce
Average house prices had experienced a slowdown in early 2019. However, this new survey suggests that the UK housing market is stabilising and may start to make gains again.
Miles Shipside, director at Rightmove, explained: “The rise in new seller asking prices reflects growing activity as the market builds momentum, egged on by the arrival of Easter…It’s one of the most price-sensitive markets that we’ve seen for years, with buyers understandably looking for value with extra quality and appeal that suit their needs.”
Average Greater London house prices were down 2.2 per cent on an annual basis, but saw monthly gains of 1.1 per cent in April, in line with the national picture. Wales and the West Midlands saw the best performance of any regions, with the West Midlands outperforming all others, with an average price increase of 3.8 per cent on an annual basis, followed by Wales, where prices grew on average 3.6 per cent
Impatient buyers
The looming Article 50 deadline was a factor in the March report, but in April, Article 50 was extended until October 2019. In the meantime, Mr Shipside believrs households looking for new homes suited to growing families may have grown impatient, and decided to remain active in the markets.
He commented: “No doubt there are still a lot of twists and turns to come, but this extension could give hesitating home movers encouragement that there is now a window of relative certainty in uncertain times.”
He was keen to stress that: “We are not anticipating an activity surge, but maybe a wave of relief that releases some pent-up demand to take advantage of static property prices and cheap fixed-rate mortgages. This demand is clearly there as March was Rightmove’s busiest ever month with over 145 million visits to the site.”
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