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UK Property Market: The Biggest Increase in Prices in Months

UK Property Market: The Biggest Increase in Prices in Months

In the last 10 months, the UK property market has shown signs of revitalisation after a period described as "muted" in 2023.

A report by Rightmove has revealed a notable uptick in house prices, marking the largest increase witnessed in ten months. According to the data, the average asking price for homes in the UK has surged by 1.5% in March, a rise of £5,279, bringing the average price to nearly £370,000. This growth exceeds the usual March average of 1%, signalling a robust recovery in the market.

The push in prices has been attributed to a combination of increased buyer demand and stronger house sales during March. Estate agents across the country have reported a significant spike in buyer interest, with many potential homeowners recognising a favourable opportunity to purchase properties. The current average asking price stands at £368,118, reflecting a substantial increase, albeit still slightly below the peak prices of May 2023.

The market's dynamics are also underscored by the report from Halifax, which indicates that the average UK house price is nearing its peak level recorded in June 2022. Tim Bannister, the director of property science innovation at Rightmove, highlighted the surge in sales agreements since the beginning of March, with a 13% increase compared to the same period last year. This rise is predominantly driven by the demand for larger homes.

However, despite the positive trends, challenges persist. The average time to secure a buyer has extended to 71 days, the longest since 2019, with overpriced properties lingering on the market. London, in particular, has experienced a significant boost in buyer demand, attributed to factors such as the return to office work, wage growth, stable house prices, and a slowdown in inflation.

The property market's recovery, however, is tempered by the evolving mortgage landscape. Mortgage rates have seen fluctuations, with the average five-year mortgage rate currently at 4.84%, up from 4.64% just five weeks ago. These changes continue to test buyer affordability and highlight the unpredictable nature of the mortgage market.

This landscape of recovery, demand, and financial challenges underscores the importance of alternative financing options like bridging finance. Bridging loans offer a flexible solution for buyers looking to navigate the gaps in property transactions, especially in a market characterised by swift changes and opportunities.

As the housing market evolves, bridging finance stands as a critical tool for both buyers and sellers, enabling them to seize opportunities and manage financial hurdles in the dynamic UK property market.

Source: The Guardian 0207 052 1652 

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