Nick Leeming, Chairman of Jackson-Stops, comments on the ONS House Price Index published today, 21 June 2023

Following the ONS House Price Index published today which showed that in April 2023 UK house prices increased by 0.4% on a seasonally adjusted basis, reaching £286,000 on average, Nick Leeming, Chairman of Jackson-Stops, comments:

“Today's figures show a slight uptick month on month but continue to point to a modest market rebalancing after the rapid acceleration of house prices during the pandemic. The speed at which prices rose, and held, surprised almost everyone as only the most optimistic could have foreseen this outcome in March 2020. After a moment of pause, property values are finding their new normal as the pendulum swings back into the favour of buyers; but only just.

“Clear pockets of the market continue to be well insulated from wider mortgage turbulence. Beauty spots such as North Norfolk, the Cotswolds and parts of the West Country, alongside well-connected commuter villages, remain characterised by low supply and a healthy pipeline of cash from London buyers keen to make the move.

“Whilst house prices may decline marginally across some areas as a as the year progresses the harsh reality continues to be that those at the lower end of the market will find themselves riding the biggest waves. First time buyers are faced with rising bills and dwindling deals, having to readjust their expectations. Both the Bank of England and the Government are acutely aware of the consequences of a high inflationary environment, but the tactic of rising interest rates alone may not yet be enough to turn the tide.

“Interest rates may still not have peaked. This means that today’s market, even with its challenges, continues to be a good time to sell for buyers committed to moving and wanting to achieve a good price, before any market readjustments filter through.”