Stability in UK Housing Market as Prices Show Modest Increase in Marchadmin
In March, the average price of homes entering the market in Britain showed stability, with a modest monthly increase of 0.8%.
Although this growth was below the historical average for March, it indicates a more balanced housing market following the disruptions caused by the “mini-budget” in 2022. Despite challenges such as higher mortgage rates and economic headwinds, the housing market is rebounding faster than anticipated.
Sales in the first-time buyer segment are recovering at a quicker pace compared to larger homes that were in high demand during the pandemic.
The Office for Budgetary Responsibility predicts a 10% decline in house prices this year due to income constraints and increased borrowing costs. Inflation is expected to decrease to 2.9% by the end of 2023, and the Bank of England is contemplating a potential interest rate hike to achieve its 2% inflation target.