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Zoopla said in its House Price Index that the decline in house prices has slowed and is expected to remain flat through the remainder of 2023.
Prices have fallen 1.3% over the past six months, but the annual growth rate through May was still just 1.9%.
About 18% of homes currently for sale on Zoopla have lowered their asking price by 5% or more, down from 28% in February.
In London, prices have fallen 0.2% over the past year.
Sarah Coles, head of personal finance at Hargreaves Lansdowne, worries the market could be hurt by further increases in the Bank of England’s base rate.
“There are still many positives, such as higher sales and lower markdowns,” she said. But the future of the market is to a large extent in the hands of the Bank of England.
“A strong labor market and gradually declining mortgage rates helped highlight the positive news. It is worth bearing in mind that it was a bountiful year, albeit low.
“Home prices continued to fall, but the rate of decline has moderated, with annual prices remaining in positive territory, with one-fifth of properties on the market depreciating, significantly lower than their February peak. is down to.”
“However, dark clouds have rolled in over the past week. Rising core inflation has pushed the market price of interest rates up to around 5.5%. Any more could sap some of the heat out of the swap market and dampen those expectations, but in the meantime it’s bad news for mortgage borrowers.
“Rising mortgage rates could make it more difficult for new buyers to get affordable mortgages, dampening demand and driving prices down. may occur, forcing some traders to sell out, which may lead to an increase in supply.An imbalance between supply and demand may cause prices to fall.
“The extent of the impact will depend to some extent on how long rate increases last. If core inflation starts to move in the right direction, fears of further rate hikes will ease, and mortgage contracts could become cheaper. But if inflation stays higher than expected, it could pose more serious problems for the housing market.”
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