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Activity levels in the UK housing market have slowed in recent months as a result of higher mortgage rates and a sharp rise in the cost of living, but realtors are hoping for a change of fortunes as they head into an important spring property. sales season.
Realtors face a major hit to earnings if property sales remain sluggish, seen as a spring of success or failure as agents compete for business and appear to sell more properties set stuff
“Ask prices are likely to come under more pressure as affordability tightens enter a traditionally busy spring market,” said Tom Bill, head of UK housing research at Knight Frank. rice field. “While we expect about half of the 20% increase seen during the pandemic to be reversed, most evidence that is not backwards points to a stronger than expected market.”
However, Bill believes the UK housing market is showing positive signs that it is nearing “the end of the long aftermath of mini-budgets rather than the brink of a price plunge”.
House prices rose unexpectedly last month, which may reflect improving consumer confidence and the mortgage market, lender Halifax said yesterday, but the overall trend is still down. be.
House prices rose 1.1% month-on-month, following a 0.2% gain in January, according to Halifax data.
Halifax has struck a cautious tone on the market outlook despite rising house prices.
“Recent mortgage rate cuts, improved consumer confidence and continued resilience in the labor market have all contributed to the declines seen in November and December,” said Kim Kinnaird, director of mortgages in Halifax. “It helps keep prices stable,” he said.
“Nevertheless, home prices have declined on a quarterly basis and underlying activity continues to show a general downward trend,” Kinnaird added.
Home prices are up 2.1% from a year ago, according to Halifax, providing much-needed ‘calmness’ to the housing market following ‘volatility and uncertainty caused by mini-budgets’. said Jason Tebb, CEO of OnTheMarket. .
“The market continues to rebalance, but in a cautious manner,” he said.
Reflecting on February’s Halifax Home Price Index, Chesterton’s Head of Research Sebastian Verity said: This increase in real estate for sale will inevitably lead to a more balanced market environment. “
Propertymark CEO Nathan Emerson added:
“Rising interest rates have caused buyers to reconsider budgets and negotiate prices, but the desire to complete purchases and go home remains.”