Average prices rose 4.1 per cent in the 12 months to March, but this was down from the 5.8 per cent increase seen in February.
Today’s (May 24) data released by the Office for National Statistics showed the average UK house price increased by £11,000 in the last year to £285,000 in March.
However, this was £8,000 below the recent peak in November 2022.
Average house price, UK, January 2005 to March 2023
Source: ONS
While today’s figures remain positive for anyone looking to sell their home, home movers and first-time buyers still have to contend with historically high prices.
But despite this, estate agents have said the sales market this year has remained strong.
For the first time in a very long time, it's about as even a market as you can get, namely neither a buyers' nor a sellers' market Matt Baldock, Charles David Casson
Matt Baldock, director of Chelmsford-based estate agents Charles David Casson, said we have reached a period where the market is “even” and is not swinging in favour of buyers or sellers.
"Buyers have now accepted current mortgage rates as the new norm, much like we all have with petrol prices. At first, you complain and stall but ultimately you adapt and there is always a real desire in this country to own a home,” Baldock said.
"For the first time in a very long time, it's about as even a market as you can get, namely neither a buyers' nor a sellers' market. It will eventually tip one way or the other but for now buyers don't feel they are overpaying and sellers, while realising prices aren't racing away anymore, are not underselling.”
He added: "The fact that inflation is now back in single digits could also boost property market sentiment, especially if it continues to fall.
“Overall, I see stability for the year, in house prices, mortgage rates and buyer demand, and after the past few years the market certainly needs a period of stability."
Renters
However, Knight Frank’s head of UK residential research, Tom Bill noted that the situation is currently not as positive for renters.
Bill pointed out that around a fifth of households in England are renting and are faced with a market where rents continue to rise.
“Politicians have targeted landlords with a series of tax hikes in recent years and as more of them leave the sector, fast-rising rents means the pain has spread to tenants,” Bill said.
