Prices are now within 5% of the previous peak reached in October 2022.
Although the month-on-month picture typically shows more volatility, the 0.4% increase shown builds on a smaller increase the month before - which, against the backdrop of easing cost-of-living pressures for many households and the growing prospect of interest rate reductions by
the Bank of England possibly later this summer, e.surv says 'may well herald the start of a more significant and lasting pick-up in market conditions'.
The report also noted that by the time of publication the General Election had taken place and that this would contribute to further increased confidence and 'less uncertainty' in the market.
Richard Sexton, Director at e.surv, comments:
“Our data shows an improving picture for the market in England and Wales and one that we expect to further improve over the coming months. In June, the average sale price of a home in England and Wales climbed by nearly £1,500 (0.4%) to £360,175. This is the strongest performance for nearly a year. Prices are now within 5% of the previous peak reached in October 2022. June’s 1.6% decrease was a full percentage point improvement on May and the strongest performance since July 2023.
“Of course, within that there are regional stories. The 1.6% year-on-year decrease in house prices seen across England and Wales almost disappears if we exclude London and the South East. The North East and Wales continue to lead the charge in improving house price performance."
“Going forward, in light of the Labour win, we should see further improvements in buyer sentiment as the government sets out to deliver on its manifesto pledges. These are ambitious and will take time but include creating a number of New Towns, rethinking the green belt, mandatory targets for Local Authorities, a Freedom to Buy Scheme, and a pledge to lower the stamp duty threshold for first-time buyers in April 2025.
“Also, we may now see action from the Bank of England on interest rates, given the improving inflation picture, which will improve affordability for buyers.”
