House prices show resilience amid easing pessimism

By Fifty21 Media

17 May 2023

AdobeStock_98922171.jpeg.jpg

The UK housing market is experiencing a gradual decline in the pace of falling house prices as sales pessimism eases, according to a survey conducted among estate agents. The findings suggest that the property market is showing signs of stabilisation following the recent spike in mortgage costs.

The Royal Institution of Chartered Surveyors (RICS) reported on Thursday that its house price balance, which measures the difference between the percentage of surveyors witnessing price increases and decreases, increased to minus 39 last month from the previous figure of minus 43 in March.

Moreover, respondents to RICS's poll expressed a more optimistic outlook for future house prices. Expectations for the coming year rose to minus 16 in April, up from the figure of minus 24 in March. This marks a significant improvement compared to the low of minus 61 reported in November of the previous year.

These improved figures come on the heels of official data released on Wednesday, which indicated that a growing number of young adults in England and Wales, particularly in London, are choosing to remain living with their parents due to the challenges of affordable housing.

While acknowledging the slight improvement in most indicators since the end of last year, RICS highlighted that the housing market still faces obstacles in gaining momentum. Higher borrowing costs and a cautious economic outlook continue to pose challenges.

Agreed sales for April saw a positive shift, reaching minus 19, the highest level since July of the previous year. However, the measure tracking new buyer demand declined to minus 37 from minus 30 in March and February.

This latest data aligns with figures released by Nationwide, a mortgage provider, which revealed a 0.5% increase in house prices between March and April. The Bank of England also reported that mortgage approvals reached a five-month high in March.

Borrowing costs have eased since reaching a peak in the autumn of last year, following the announcement of £45 billion in unfunded tax cuts by then Prime Minister Liz Truss in her ill-fated "mini" Budget. However, current borrowing costs remain higher compared to pre-September 2022 levels.

It is expected that mortgages tied to the Bank of England's base rate will further increase as markets anticipate a rise in interest rates to a 15-year high of 4.5%. Nonetheless, consumers on fixed-rate deals are benefiting from the expectation of lower long-term interest rates.

As a result of many people being unable to afford property purchases, RICS surveyors have observed a surge in rental demand, driving rental prices significantly above average levels seen over the past two decades.

Housing Affordability Issues Drive Young Families Away from London

Data released by the Office for National Statistics (ONS) on Wednesday highlights the persistent issue of housing affordability, leading to a growing number of young adults choosing to live with their parents, particularly in London.

In 2021, London had the highest proportion of families with at least one adult child—defined as someone aged over 18 or over 16 and not in education—living at home. The ONS reported that housing affordability was a major contributing factor to this trend. London was the least affordable region for property purchases last year, with the average worker spending 12.5 times their annual earnings to buy a home.

The challenging housing market in London has created a parasitical effect, deterring young families from establishing their own households. The lack of affordability makes it increasingly difficult for young adults to step onto the property ladder, leading them to seek more financially viable living arrangements with their parents.

In conclusion, the UK housing market is exhibiting signs of resilience as the pace of falling house prices slows down. Despite the improved figures, challenges persist, including higher borrowing costs and a cautious economic outlook. Meanwhile, housing affordability issues, particularly in London, are driving young adults to continue living with their parents. These factors contribute to the complex dynamics of the UK property market, shaping the landscape for both buyers and renters alike.

Latest news

1

Roundhouse secures approval for new £15m office and industrial scheme in Preston Momentum

Roundhouse secures approval for new £15m office and industrial scheme in Preston

25 Jul 2025

2

Homebuilder's high-performing sales advisers clinch awards Ben Garland and Julia Lorente

Homebuilder's high-performing sales advisers clinch awards

24 Jul 2025

3

Work is set to start on Multiversity project Multiversity Blackpool

Work is set to start on Multiversity project

24 Jul 2025

4

BAE Systems welcomes MOU between Republic of Turkiye and UK for purchase of Typhoon aircraft Typhoon production Warton

BAE Systems welcomes MOU between Republic of Turkiye and UK for purchase of Typhoon aircraft

23 Jul 2025

5

Assystem to double UK jobs to deliver Sizewell C EDF Assystem

Assystem to double UK jobs to deliver Sizewell C

22 Jul 2025

Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
Lancashire Built Environment Conference 2025
BEC 315 X 315 Px
Networking
25 Sep 2025

Lancashire Built Environment Conference 2025

Blackpool Football Club, Blackpool, FY1 6HX

08:30 - 13:00

CMI Level 5 Project Management Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Project Management Course

Preston Campus, Preston, PR1 2HE

08:00 - 17:00

CMI Level 5 Management and Leadership Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Management and Leadership Course

Preston Campus, Preston , PR1 2HE

09:00 - 17:00

Preston Tech Connection: Buzz Word Bingo. Challenging Todays's Buzzwords In Tech
July PTC banner long updated.png.png
LBV Hub Networking
29 Jul 2025 - 29 Jul 2025

Preston Tech Connection: Buzz Word Bingo. Challenging Todays's Buzzwords In Tech

Society1, Coworking Space, Preston, PR1 3LT

18:00 - 19:30

Preston Freelancer Meet-Up: July
Longer July Banner.jpg.jpg
LBV Hub Networking
31 Jul 2025 - 31 Jul 2025

Preston Freelancer Meet-Up: July

Society1, Coworking Space, Preston, PR1 3LT

10:00 - 11:30

Advantage: AI – A Workshop for Business Leaders – August 14th
Navy--Event Tile.png.png
LBV Hub Seminars
14 Aug 2025 - 14 Aug 2025

Advantage: AI – A Workshop for Business Leaders – August 14th

Door4 Office, Burnley Wharf, Burnley, BB11 1JG

09:00 - 12:00

The Business Network Central & East Lancashire
LBV Header (24).png.png
LBV Hub Networking
21 Aug 2025 - 21 Aug 2025

The Business Network Central & East Lancashire

Mytton Fold, Langho, BB6 8AB

11:30 - 14:15

Morecambe Bay Walk
Walk.jpg.jpg
LBV Hub Awards
30 Aug 2025 - 30 Aug 2025

Morecambe Bay Walk

Arnside, CARNFORTH, LA5

09:30 - 14:00

Longridge Soap Box Derby
Screenshot 2025-06-10 090035.png.png
LBV Hub Fundraisers
14 Sep 2025 - 14 Sep 2025

Longridge Soap Box Derby

Berry Lane, Longridge, PR3 3WH

10:00 - 16:30

Cumbria Business Expo 2025
https---cdn.evbuc.com-images-880461633-4862066883-1-original.20241022-110415.jpeg.jpg
LBV Hub Exhibitions
19 Sep 2025 - 19 Sep 2025

Cumbria Business Expo 2025

Carlisle Racecourse, Carlisle, CA2 4TS

09:00 - 15:00

Help to grow management course
Help to grow - barriers to growth.png.png
LBV Hub Seminars
26 Sep 2025 - 16 Dec 2025

Help to grow management course

Preston Campus , Preston , PR1 2HE

09:00 - 15:00

RISE - Lancashire's unique leadership programme for women
thumbnail_Emma Weston Illustration WENDY BOWERS RISE Illustrstion.jpg.jpg
LBV Hub Seminars
22 Oct 2025 - 18 Mar 2026

RISE - Lancashire's unique leadership programme for women

East Lancashire Chamber of Commerce, Clayton le Moors, BB5 5JR

09:30 - 15:30

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more LBV 123 Online Graphic
Subscribe now

Weekly news bulletin