Housing market poised for ‘spring bounce’ after Brexit

‘London is suffering from a post-boom hangover’

THE average price tag on a home is 0.8 per cent lower than it was a year ago as the spring selling season gets off to a subdued start.

Across Britain, the average asking price for a home this month stands at £302,002, said online estate agent Rightmove.

While this is lower than a year ago, prices have edged up by 0.4 per cent or £1,287 month on month.

Rightmove said this was the lowest month-on-month increase seen at this time of year since 2011 and “considerably lower” than the 0.9 per cent average increase seen over the past seven years.

The usual spring bounce in the housing market is, at best, being delayed by Brexit uncertainty, it added.

Rightmove director Miles Shipside said: “While March marks the start of spring, temperatures have yet to rise in the housing market. Buying activity remains cooler than usual, with hesitation as some buyers await a more settled political climate.

“There’s greater resilience the further away you get from the London market, and there’s a sound bedrock of demand for the right property at the right price, reinforced by ongoing housing needs combined with cheap mortgage borrowing.”

In Scotland, asking prices have jumped by 3.1 per cent month on month – the biggest increase in March of all Britain’s nations and regions, followed by the North West of England with a 2.2 per cent increase. In Wales, asking prices are up by 1.4 per cent.

Asking prices in London are down by 1.1 per cent on the previous month, while the only other English region to record a monthly fall is the North East, down by 1.3 per cent, with elsewhere in Britain seeing an increase.

London asking prices are 68 per cent higher than they were 10 years ago, while those in the North East of England have increased by 8 per cent over the past decade.

Mr Shipside said: “London and some of its commuter belt are suffering from a post-boom hangover, with prices now having to be far more sober to attract buyer interest.”

Rightmove said the number of sales agreed by estate agents in February was 7 per cent below the same period in 2018. But search activity on Rightmove remains steady, with the number of visits to the website staying level in the year to date.

It said this indicates that home movers are “keeping a watching brief”, which could lead to an eventual bounce when the uncertainty subsides.