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

New India branch campus on the horizon for Lancaster University Keir Starmer meets Indian PM and included Prof Simon Guy Lancaster University. Pic Simon Dawson

New India branch campus on the horizon for Lancaster University

09 Oct 2025

2

Best events and talented students complete finalists list for Lancashire Tourism Awards 2026 Best Events and Talented students on Lancashire Tourism Awards finalist list

Best events and talented students complete finalists list for Lancashire Tourism Awards 2026

09 Oct 2025

3

East Lancashire Learning Group named UK digital transformation leader in CIO 100 Awards Andrew Dewhurst with the award win

East Lancashire Learning Group named UK digital transformation leader in CIO 100 Awards

09 Oct 2025

4

PHX Training appoints new business leader in Blackpool Jason Davenport PHX Training

PHX Training appoints new business leader in Blackpool

09 Oct 2025

5

Velocity seals Airbus extension worth up to $54m Velocity Composites Has Announced Its Entry Into The Us Market

Velocity seals Airbus extension worth up to $54m

08 Oct 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
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

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

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

Unlocking major project opportunities in the North West
Lancs-cham-logo.jpg.jpg
LBV Hub Seminars
15 Oct 2025 - 15 Oct 2025

Unlocking major project opportunities in the North West

Strathmore Hotel, Morecambe, LA4 5AP

08:00 - 10:00

The New Employee Rights Landscape: Day One Compliance Essentials
EventBrite NORi - 15th Oct 2025 Webinar.png.png
LBV Hub Webinar
15 Oct 2025 - 15 Oct 2025

The New Employee Rights Landscape: Day One Compliance Essentials

Microsoft Teams, Microsoft Teams, PR253XH

13:30 - 15:00

The Autumn Re set - pour me a wine
LBV Advert_Autumn Reset 1200 x 630px.png.png
LBV Hub Networking
16 Oct 2025 - 16 Oct 2025

The Autumn Re set - pour me a wine

The Artistry House , Preston , PR1 3JJ

17:30 - 19:30

The Business Network Central & East Lancashire
LBV Header (26).png.png
LBV Hub Networking
16 Oct 2025 - 16 Oct 2025

The Business Network Central & East Lancashire

Stanley House, Blackburn, BB2 7NP

11:30 - 14:15

October Freelancer Meet-Up
LBV Hub Networking
16 Oct 2025 - 16 Oct 2025

October Freelancer Meet-Up

Society1, Coworking Space, Preston, PR1 3LT

10:00 - 11:30

Women scaling up Blackpool Fylde and Wyre
LBV Hub Seminars
22 Oct 2025 - 09 Jan 2026

Women scaling up Blackpool Fylde and Wyre

The Small Business Academy, Blackpool, FY4 5JX

09:30 - 15:30

HR Essentials for pubs, bars and licensed venues
EventBrite NORi - 22nd Oct Webinar.png.png
LBV Hub Webinar
22 Oct 2025 - 22 Oct 2025

HR Essentials for pubs, bars and licensed venues

Online - Teams, Leyland, PR253XH

13:30 - 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

Chamber Business Lunch – October
LBV Hub Networking
24 Oct 2025 - 24 Sep 2025

Chamber Business Lunch – October

Lancaster Golf Club, Lancaster, LA2 0AJ

11:00 - 13:30

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 LBV124 Online Graphic
Subscribe now

Weekly news bulletin