UK House Prices Growth Slows Amid Oversupply

UK House Prices Growth Slows Amid Oversupply

The UK property market is experiencing a slowdown in growth, with average asking prices rising only 1.7% from last year to £366,247 ($454,570) in April, Invest-Gate reports.

The recent figures mark the slowest increase since December 2019, prior to the pandemic and government tax breaks that triggered a buying frenzy. In March, the pace of monthly growth also slowed from 0.8% to 0.2%.

Despite mortgage rates rising and double-digit inflation, a lack of new properties for sale has kept prices high. The market saw a surge in prices during the pandemic lockdowns when the government cut sales fees to boost demand.

Tim Bannister, Director of Property Science Innovation, comments: “Several sellers have shifted from the frantic, multi-bid market mentality in recent years, recognizing the new need to attract spring buyers at a competitive price.” While price growth has slowed, record prices were still seen for the first time by buyers, and there were signs of improving trust between buyers and sellers.”

The Rightmove website reported that real estate sales have rebounded to pre-pandemic levels, with an improvement in the number of homes offered for sale by real estate agents for the second month. Additionally, the average time to find a buyer for a property fell to 55 days.

It is worth noting that London and the North East of England saw prices decline compared to the previous month. Prices in the capital were flat compared to last year, with affluent boroughs such as Kensington and Chelsea experiencing the biggest declines.

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