Capital appreciation still strong despite flurry of interest rate rises

Analysis by Rightmove suggests that capital appreciation remains strong for landlords and owner occupiers alike, despite the recent flurry of interest rate rises.

The portal says the price of property coming to market has hit a fourth consecutive record of £367,501, up by 2.1 per cent over the past month.

Average asking prices have risen more than £55,000 in the past two years, compared to a £6,000 rise in the two years before the pandemic

Activity levels remain strong and still significantly higher than pre-pandemic, though there are signs that the frenetic market is starting to ease.

The number of buyers contacting estate agents in the month is 31 per cent higher than the more normal 2019 market, but down 14 per cent year-on-year.

Available properties are down 16 per cent compared to last year and down 55 per cent compared to 2019, with new stock most desperately needed for two and three bedroom semi-detached homes.

“Though demand is softening from the heady levels we saw this time last year, the number of buyers enquiring is still significantly higher than during the last ‘normal’ market of 2019, while the number of homes for them to choose from remains more constrained” says a Rightmove spokesperson.

“We anticipate that the effects of the increased cost of living and rising interest rates will filter through to the market later in the year, and a combination of more supply of homes and people weighing up what they can afford will help to moderate the market.”

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