ONS House Price Index, June 2023: Nick Leeming, Chairman of Jackson-Stops comments...
Following the latest ONS House Price Index showing that on a seasonally adjusted basis, the average UK house price increased by 0.3% in June 2023 and the Average UK house prices increased by 1.7% in the 12 months to June 2023, Nick Leeming, Chairman of Jackson-Stops, comments:
“The spring bounce has been more of a spring bump, in today’s ONS house price results. Whilst we’ve been used to a prolonged period of monthly house price growth for the past few years, alongside Spring’s typically seasonally high demand, these latest figures set the tone for a cooler end to the summer. As August progresses, it is likely values won’t pick up pace in the short term as family breaks and school holidays take precedent. What will be telling for industry are the values that will be recorded in September - another typical ‘bounce’ month in the calendar as many try to move before Christmas.
"It is worth noting however, that year-on-year house price growth remains positive at 1.7%, or £5,000 more than 12 months previous; a nod to the UK property market’s remarkable resilience. A lack of supply and a steady flow of cash buyers are working to maintain wider momentum against a bumpy economic outlook.
"This week we also heard the news that the economy grew by 0.5% in June, and 0.2% overall in Q2, outpacing the 0.1% growth recorded in the first quarter. This gives us wider hope that steadier times are ahead for consumer confidence, with mortgage rates finding their new normal and inflation slowly being tamed.
"Long term, we all need to become more accustomed to higher mortgage repayments as well as higher energy bills as part of our new normal. Bricks and mortar continue to be one of the best investments anyone can make for their future, and a purchase often made not with capital returns in mind, but with quality of life. Broadly, values are keeping firm, but it is important for selling agents to value properties with realism and individualism in mind, especially in markets that were previously overheated. Whilst this is far from the ice age, the days of frenzied competitive bids have likely passed.”
