Capital appreciation is starting to slow

Landlords are still enjoying substantial capital appreciation – but the latest Zoopla house price index reveals the lowest rate of monthly price growth since December 2019.

The property market in the South West remains the most buoyant with the average property taking 19 days between listing and offer accepted – with Bristol, South Gloucestershire, Plymouth, Swindon and  Exeter the fast moving markets due to more stock and choice in these areas.

London continues to lag behind as the UK’s slowest moving market with time to sell currently at 35 days compared to 22 days nationally – however, this is still above the May five year average of 50 days.

Despite Wales and London being at opposite ends when it comes to house price growth (11.4 vs 3.9 per cent) – it equates to a similar increase in monetary terms, highlighting the disparity in regional house prices across the UK.  Average values in Wales are up by £32,000 over the last 24 months taking prices to an average of £192,500. This contrasts to £30,000 in London over the same period, with average house prices of £516,100.

Of the UK’s largest cities, Nottingham has the highest price growth at 10.4 per cent, followed by Bournemouth at 10.2 per cent.

Nottingham has been among the top performers in terms of price growth for the last year, with the relative affordability in the city increasing its appeal, while the rise in prices in Bournemouth reflects the ongoing appetite for coastal living.

Grainne Gilmore, head of research at Zoopla, says: “Buyer demand is still strong in the housing market, but signals are emerging that the impetus may be easing, so those who want to make a move should investigate their options sooner rather than later.

“In addition, mortgage rates are likely to continue to climb, so locking into a rate shortly could save hundreds over the longer-term.

“There are many factors supporting the price growth seen since the start of the pandemic, not least the continued imbalance between demand and supply, but the increasing cost of living, increasing mortgage rates for buyers and cloudier economic outlook will act as a brake on house price growth through the rest of the year.”

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