Average Price
The average price of newly listed homes for sale rises by 0.8% (+£3,023) in March to £371,042, a typical seasonal increase reflecting the start of the spring selling season. The number of homes for sale remains a key factor limiting more significant price growth, as the eleven-year high level of supply is giving buyers more choice. Therefor, sellers may need to price even more competitively this year to find a buyer in the high supply market.
Affordability remains a key driver of activity in the current price-sensitive market, indicated by regional and sector splits. The lower-priced North of England, Scotland and Wales are seeing stronger annual price growth than the more expensive southern England.
Supply & Demand
Market activity in March appears stable so far despite the new geopolitical uncertainty created by the Iran war, as number of sales are still 5% ahead of the same time in 2024. This suggests that buyers are continuing to search for their new home despite the current events.
The number of new listings coming onto the market is also 7% ahead of 2024.
Interest Rates
Mortgage rates remain below their levels of a year ago. However, Rightmove’s daily mortgage tracker shows that the average two-year fixed mortgage rate has risen to 4.51%, from 4.24% the week before. This increase underlines how sensitive the mortgage market is to changes in inflation expectations and geopolitical risk.
The current base rate set by the Bank of England stands at 3.75%, with the next meeting due on the 30th of April.
Regional Trends: North East
The average price for homes in the North East is £194,832 with a 1.2% month-on-month increase and a 0.6% increase since the same period last year. On average, it takes 60 days to sell a property in the North East region.
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Source: Rightmove
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