June Market Update: Prices Hold Steady in Bognor Regis, Regional Growth Emerges

In June, the average price of property coming to the market for sale has seen a marginal decrease, dropping by just £21 (0.0%) to £375,110. This comes after prices reached a record high in May. This minor fluctuation follows the familiar seasonal pattern observed in recent years, resulting in stable prices this month.

Regional Price Trends

Interestingly, less expensive and more northerly regions are experiencing stronger price growth this month. Five of the six cheapest regions have reached new price records, while the higher-priced East of England and London are lagging behind. This regional disparity highlights the varying dynamics within the UK property market, where affordability and location significantly influence price trends.

Market Activity Post-Election Announcement

The majority of buyers and sellers have continued with their plans since the election was called. The only noticeable sign of election-related caution is a slight drop in the number of new sellers, particularly at the typically more discretionary top-end of the market. Over the last four weeks, the number of sales being agreed has remained steady, showing a 6% increase compared to the same period last year. This indicates a resilient market where buyer demand remains robust, currently 5% higher than last year.

A poll by Rightmove, involving over 14,000 people, supports this stability. It revealed that 95% of those planning to move home said that the election would not affect their plans. This confidence is mirrored in the market activity observed in the two weeks since the surprise election announcement, with only a 3% decrease in the number of top-end sellers coming to the market compared to a year ago. This is in contrast to an 11% increase in the previous two-week period.

Mortgage Rates and Affordability Concerns

Despite the steady market activity, stubbornly high mortgage rates continue to stretch affordability for many potential movers. Future buyers are likely to keep a closer eye on when the first Bank of England rate cut might occur, rather than focusing on pre-election housing market promises. Currently, the average 5-year fixed mortgage rate stands at 5.04%, a slight increase from 4.94% in January.

As we move through June, the property market remains resilient, with regional variations in price growth and a watchful eye on mortgage rates. Buyers and sellers continue to navigate the market with cautious optimism, adapting to both seasonal patterns and broader economic influences.

Credit to Rightmove Property Price Index