Interest rates, high inflation and cost of living are all still having an impact across the UK.<\/p>\n
\u00a0<\/strong>We have compiled the data from RICS, Nationwide and Halifax alongside the latest Government price index data, to provide a comprehensive overview of the current housing market position.<\/p>\n \u201cThe results of the March 2023 RICS UK Residential Survey continue to depict a generally weak market backdrop, with indicators on demand, sales, new listings and house prices all remaining in negative territory. Moreover, near-term expectations suggest this pattern will remain in place for a while longer amid the tighter lending environment. That said, the twelvemonth view on sales volumes has improved in the latest feedback, with respondents anticipating a more stable trend coming through further ahead.\u201d<\/p>\n \u201cLooking at new buyer enquiries, a headline net balance of -29% of contributors reported a fall in demand during March (more or less unchanged from a reading of -30% last month). When disaggregated, the downturn in buyer demand remains widespread across the UK, with virtually all regions\/countries posting a negative reading in the latest returns.\u201d RICS UK Residential Market Survey March 2023<\/p>\n In summary, RICS UK conclude:<\/p>\n \u201cThe UK housing market continues to show resilience following the sharp downturn at the end of 2022, with average property prices rising again in March (+0.8%). The typical house price is now \u00a3287,880, around 2% below the peak reached last August.\u201d<\/p>\n \u201cOn an annual basis, house prices were +1.6% higher than a year ago, slowing from +2.1% in February. This is the weakest rate of annual growth in nearly three-and-a-half years (October 2019), having fallen markedly since June 2022\u2019s peak of +12.5%.<\/p>\n \u201cHowever, overall these latest figures continue to suggest relative stability in the housing market at the start of 2023 and align with many other recent industry surveys and data. This has been characterised by a partial recovery in activity and transactions, especially when compared to the significant drops seen at the end of last year, with latest Bank of England data showing mortgage approvals rising for the first time in six months.\u201d Kim Kinnaird, Director, Halifax Mortgages<\/p>\n In summary, Halifax identified:<\/p>\n Commenting on the latest data, Nationwide Chief Economist, Robert Gardner said:<\/p>\n \u201cMarch saw a further decline in annual house price growth, with prices down 3.1% compared with the same month last year. March also saw a further monthly price fall (-0.8%) \u2013 the seventh in a row \u2013 which leaves prices 4.6% below their August peak (after taking account of seasonal effects).<\/p>\n \u201cThe housing market reached a turning point last year as a result of the financial market turbulence which followed the mini-Budget. Since then, activity has remained subdued \u2013 the number of mortgages approved for house purchase remained weak at 43,500 cases in February, almost 40% below the level prevailing a year ago (see chart below).\u201d<\/p>\n In summary, Nationwide identified:<\/p>\n <\/p>\n Government Land Registry House Prices Index \u2013 February 2023 As we enter the second quarter of the year, the housing market will remain under pressure, due to high inflation and the ongoing cost of living impact. A recession has been avoided, which is a major positive. Interest and SONIA rates are indicating they have peaked or closed to, providing further assurance the market requires.<\/p>\n Damien Druce, Commercial Director, Black & White <\/strong><\/p>\n \u201cDespite the pressures that exist in the housing market, we are continuing to see high demand for bridging finance. Due to the flexibility and usage these products offer, brokers and their borrowers still see value in the market and are taking advantage of this.\u201d<\/p>\n \u201cWith rates now stabilising, inflation dropping, albeit stubbornly, the property sector has so far, weathered a severe storm. Whilst this will remain fluid, if the cost of living really starts to ease and inflation continues to come down, we could see further momentum in the second half of the year.\u201d<\/p>\n Nationwide Chief Economist Rob Gardner said:<\/strong><\/p>\n \u201cIt will be hard for the market to regain much momentum in the near term since consumer confidence remains weak and household budgets remain under pressure from high inflation. Housing affordability also remains stretched, where mortgage rates remain well above the lows prevailing at this point last year.\u201d<\/p>\n Kim Kinnaird, Director, Halifax Mortgages said:<\/strong><\/p>\n \u201cPredicting exactly where house prices go next is more difficult. While the increased cost of living continues to put significant pressure on personal finances, the likely drop in energy prices \u2013 and inflation more generally \u2013 in the coming months should offer a little more headroom in household budgets.\u201d<\/p>\n \u201cWhile the path for interest rates is uncertain, mortgage costs are unlikely to get significantly cheaper in the short-term and the performance of the housing market will continue to reflect these new norms of higher borrowing costs and lower demand. Therefore, we still expect to see a continued slowdown through this year.\u201d<\/p>\n Are you a broker, looking to utilise a lender who is truly transparent? Do you have an investor looking at their next auction purchase? Identified a renovation project, but unsure how to finance it? Contact us today on 0117 937 4333 or send an enquiry to enquiries@blackandwhitebridging.co.uk to find out how we can assist.<\/p>\n Black & White Bridging, truly transparent lending with no grey areas.<\/p>\n","protected":false},"excerpt":{"rendered":" Interest rates, high inflation and cost of living are all still having an impact across the UK. March 2023 Review \u00a0We have compiled the data from RICS, Nationwide and Halifax alongside the latest Government price index data, to provide a comprehensive overview of the current housing market position. \u201cThe results of the March 2023 RICS […]<\/p>\n","protected":false},"author":4,"featured_media":5883,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_mo_disable_npp":"","inline_featured_image":false,"episode_type":"","audio_file":"","cover_image":"","cover_image_id":"","duration":"","filesize":"","date_recorded":"","explicit":"","block":"","filesize_raw":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[11],"tags":[],"class_list":["post-5875","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"acf":[],"jetpack_featured_media_url":"https:\/\/blackandwhitebridging.co.uk\/wp-content\/uploads\/2023\/04\/HPI-March-Portrait.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/blackandwhitebridging.co.uk\/wp-json\/wp\/v2\/posts\/5875","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blackandwhitebridging.co.uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blackandwhitebridging.co.uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blackandwhitebridging.co.uk\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/blackandwhitebridging.co.uk\/wp-json\/wp\/v2\/comments?post=5875"}],"version-history":[{"count":0,"href":"https:\/\/blackandwhitebridging.co.uk\/wp-json\/wp\/v2\/posts\/5875\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blackandwhitebridging.co.uk\/wp-json\/wp\/v2\/media\/5883"}],"wp:attachment":[{"href":"https:\/\/blackandwhitebridging.co.uk\/wp-json\/wp\/v2\/media?parent=5875"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blackandwhitebridging.co.uk\/wp-json\/wp\/v2\/categories?post=5875"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blackandwhitebridging.co.uk\/wp-json\/wp\/v2\/tags?post=5875"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}\n
Halifax House Price Index<\/strong><\/h3>\n
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Nationwide<\/strong><\/h3>\n
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\n<\/strong>\n\n\n
\n\t \nRegion \/ County<\/th> 1 Month %<\/th> 3 Month %<\/th> 6 Month %<\/th> 12 Month %<\/th> 24 Month %<\/th>\n<\/tr>\n<\/thead>\n \n\t England<\/td> -0.81%<\/td> 1.53%<\/td> -0.63%<\/td> 6.05%<\/td> 15.41%<\/td>\n<\/tr>\n \n\t Wales<\/td> -0.63%<\/td> -2.39%<\/td> -1.32%<\/td> 6.35%<\/td> 19.93%<\/td>\n<\/tr>\n \n\t London<\/td> -1.10%<\/td> -1.22%<\/td> -2.28%<\/td> 2.95%<\/td> 8.53%<\/td>\n<\/tr>\n \n\t South East<\/td> -1.17%<\/td> -0.94%<\/td> -0.40%<\/td> 5.82%<\/td> 16.42%<\/td>\n<\/tr>\n \n\t South West<\/td> -1.17%<\/td> -2.57%<\/td> -1.92%<\/td> 5.83%<\/td> 17.49%<\/td>\n<\/tr>\n \n\t West Midlands Region<\/td> -0.17%<\/td> 0.29%<\/td> 2.65%<\/td> 9.95%<\/td> 18.38%<\/td>\n<\/tr>\n \n\t East of England<\/td> -0.10%<\/td> -1.14%<\/td> 0.23%<\/td> 5.58%<\/td> 16.40%<\/td>\n<\/tr>\n \n\t East Midlands<\/td> -1.12%<\/td> -1.33%<\/td> -0.02%<\/td> 7.35%<\/td> 17.38%<\/td>\n<\/tr>\n \n\t North West<\/td> 0.56%<\/td> -2.56%<\/td> -0.61%<\/td> 6.97%<\/td> 15.94%<\/td>\n<\/tr>\n \n\t Yorkshire & The Humber<\/td> -0.04%<\/td> -2.51%<\/td> -0.95%<\/td> 5.55%<\/td> 14.28%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/p>\n Outlook<\/strong><\/h3>\n
Sources: Index data taken from Government Land Registry House Price Index \u2013 Mar 2023, March statistics taken from Halifax House Price Index, Nationwide House Price Index, RICS UK Market Survey<\/h6>\n