ARK’s Market Synopsis

By Chris Seeley · 3 April 2023

Welcome to the latest edition of ARK’s market synopsis report, covering market outcomes to the end of February 2023.

The market is holding steady, in contrast to many predictions made last year. The volume of homes coming to market have increased slightly but demand still outstrips supply, resulting in stable sales values. Mortgage interest rates have begun to reduce, although we are not expecting them to return to pre-pandemic levels.

Looking across the UK, Halifax reports annual growth fell the least in Scotland, with an average house price of £198,779 (a growth rate of 2.2%, vs 2.3% in January.) Similarly in Wales, annual growth in February was 1.2% (vs 1.9% in January), with homes now costing £210,917, on average. Those purchasing a home in Northern Ireland will now pay £185,009, on average, an annual growth rate of 5.7% (vs 7.0% in January.)

By property type, Halifax reports the price of flats have reduced over the past 12 months (-0.3% annual growth), while prices for terraced properties have broadly stagnated (+0.3%). For detached properties, an increase of just 1.5% has been seen, the lowest rise since the end of 2019. Annual price inflation remains stronger for new houses (+6.6%, a four-month high) than for existing properties (+1.1%, unchanged at the lowest in nearly a decade).

Hometrack reports slower sales and a steady flow of new supply have increased the stock of homes for sale, by 60%, when compared to last year. The average estate agent office has 24 homes for sale compared to 15 homes, a year ago. This gives buyers more choice and room for negotiating offers, as well as helps to reduce some of the upward pressure on house prices.

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