House prices in England and Wales fell 1.6% in the year to June, the latest e.surv data has revealed.

The drop is a considerable improvement on the 3.3% annual decrease recorded in the May report. 

Despite the annual fall, the surveyor’s House Price Index showed signs of recovery on a monthly basis, with an increase of 0.4% from May to June, equating to £1,500 and the strongest performance recorded by e.surv for nearly a year.

The average house prices in England and Wales now stands at £360,175, within 5% of the peak in October 2022, according to e.surv director Richard Sexton.

“Our data shows an improving picture for the market in England and Wales and one that we expect to further improve over the coming months,” says Sexton.

“Of course, within that there are regional stories. The 1.6% year-on-year decrease in house prices seen across England and Wales almost disappears if we exclude London and the South East. The North East and Wales continue to lead the charge in improving house price performance.

“Going forward, in light of the Labour win, we should see further improvements in buyer sentiment as the government sets out to deliver on its manifesto pledges. These are ambitious and will take time but include creating a number of New Towns, rethinking the green belt, mandatory targets for Local Authorities, a Freedom to Buy Scheme, and a pledge to lower the stamp duty threshold for first-time buyers in April 2025.

“Also, we may now see action from the Bank of England on interest rates, given the improving inflation picture, which will improve affordability for buyers.”

Source: Rebekah Commane – Mortgage Strategy 09/07/24