A prominent housing index claims prices are, on average, some 3.3% lower than a year ago but with the North East the first region to move out of negative territory.
Average house price in England & Wales now at £356,014, down 0.2% on April, down 3.3% annually, says e.surv.
Director Richard Sexton comments: “This month, the average sale price of a home in England and Wales in May fell by just over £600 (0.2%) to £356,014 which is about £12,000, or 3.3, lower than a year ago. Prices are now £23,000 (6.1%) below the peak reached in October 2022, but they still remain some £40,000 (13%) higher than at the start of the pandemic in March 2020.
“The pushing back of previously expected interest rate cuts by the Bank of England and the subsequent upward repricing of mortgage rates by lenders, has meant any anticipated help for borrowers has been short-lived. Less buyers, of course, has an impact on prices which we can clearly see being played out at a regional level.
“A real north south divide has opened up. London, the South East, and East of England are the regions with the weakest price trends and continue to struggle, reflecting the much higher house price levels, affordability challenges and greater reliance on mortgage finance in these regions - factors that really impact first-time buyers whose prospects of buying have been facing headwinds for years now.
“Much of this may change after the coming election as political parties are already promising action to support the first-time buyer market.”
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