HomeEconomic IndicatorUK property prices increase for the first time in a year, marking...

UK property prices increase for the first time in a year, marking a unique trend.

UK Property Prices Show First Annual Rise Since August

Strengthened Demand Leads to First Annual Rise in UK Property Prices

The prices of homes being put up for sale in Britain have risen in annual terms for the first time in six months as demand from buyers strengthened. According to an industry survey, this adds to the signs of stabilisation in the housing market.

Rightmove Reports First Annual Increase in Asking Prices

Property website Rightmove revealed that asking prices for homes rose 0.1% in February compared to a year earlier, marking the first annual increase since August 2023.

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Steady Increase in Property Prices

Prices increased by 0.9% from January, which is broadly in line with the 10-year average of a monthly 1.0% rise in February.

Property Sector Picks Up Amid Falling Mortgage Interest Rates

After a slowdown, Britain’s property sector has picked up in recent months as mortgage interest rates fell on expectations that the Bank of England will lower borrowing costs this year.

Agreed Sales and Buyer Enquiries on the Rise

A measure of agreed sales in the first six weeks of 2024 was up 16% from a year earlier and was 3% higher compared with 2019, before the coronavirus pandemic, Rightmove said. Properties coming onto the market and buyer enquiries increased by 7%.

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Cautious Optimism Amid Elevated Mortgage Rates

Tim Bannister, Rightmove’s director of property science, expressed cautious optimism with mortgage rates still elevated in historical terms. BoE officials have said they need to see further evidence of inflation pressures easing before cutting rates, despite the economy falling into a recession late last year.

Improvement in Britain’s Housing Market

Monday’s survey chimed with other signs of an improvement in Britain’s housing market. The Royal Institution of Chartered Surveyors reported this month the biggest jump in new buyer enquiries in nearly two years. Mortgage lenders Nationwide and Halifax both reported a rise in house prices in January.

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