The National Building Association’s gauge showed house prices rose 0.5% last month after falling 0.7% in March, the first increase since August last year, and expectations were that the decline continues.
Experts say economic data has given the impression that house prices will not see a drop of 10% or more, as some had warned, as inflation and high interest rates undermine affordability new homes, but the lack of supply of real estate that is put on the market has helped to mitigate the decline in prices.
The annual pace of price decline eased to 2.7% last month from 3.1% in March, bringing the median house price to 260,441 pounds ($325,500), or 4% lower. less than the August peak.
In terms of sales, for the first time in a year, the sector is expected to increase, according to the Royal Institution of Chartered Surveyors.
Investors expect the Bank of England’s monetary tightening cycle to continue, which could affect house prices in the months ahead. in September.
Industry watchers believe that the general economic outlook for the year ahead has improved considerably over the past few months, and so if inflation falls sharply in the second half of the year, as most analysts expect, it should boost sentiment, which could support modest growth. recovery in housing market activity.
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