The average sale price of completed home transactions in England and Wales in April 2023 rose by some £8,700, or 2.4% .
This is the lowest rate of annual increase since June 2020, and is the eighth month in succession in which the annual rate has fallen.
Data from the latest e.surv Acadata House Price Index also shows that on a monthly basis, the average price fell in April 2023 by around £1,940, or -0.5%.
April is a key month in the transactions calendar, with buyers as well as sellers active in the market. Despite this, both annual and monthly rates show evidence of continuing reductions in price growth.
Average house price in April stood at £375,063, 0.5% down on March but up 3.5% annually
The index reveals that London is the only region where prices have fallen over the year, while the West Midlands takes top place in regional growth at 6%.
e.serv director Richard Sexton stresses that while many commentators have focussed on the reduction and in some instances falls in house price growth, it’s important to put these into context.
“Since the pandemic in March 2020, we have seen house prices rise by £60,000 or 20% and the subsequent reduction of just under £5000 from the peak in October 2022 is a good place from which to do this.
“Now more than ever, we should remind ourselves that monthly trends, often sparked by non-housing economic trends, do not change some fundamentals about the market.
Sexton explains that the ongoing lack of supply and current affordability issues are stymying activity but also supporting prices in part because there simply is not enough of the right kind of housing in the market.
“The extent to which this is the case has been the acknowledgement by both main political parties this month that housing will be a key election issue. We have heard already about the mooted return of Help-to-Buy and other market led mortgage products to support new buyers”.
He adds: “We are only just past April – a key month for buyers and sellers and it is too early to say whether this key month in the housing calendar will herald a return to more normal growth trajectory. But whatever the next couple of months bring, our data suggests undue levels of pessimism are probably misplaced.”
