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House Price Reductions at an 18-Month Low as UK Property Market Bounces Back

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    Property Sales Surpass 2023 & 2019 Levels

    A new market report published by Hamptons has given an optimistic picture of the UK property market.

    This includes a fall in the amount of price reductions and a rise in sales activity. According to Hampton, areas most affected by peaking mortgage rates in 2023 have now experienced a bounce back in sales above 2023 and 2019 levels.

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      House Price Reductions Fall to Lowest Level Since 2022

      The research found that the average UK property sold during April had been on the market for 50 days, one day longer than the same time last year.

      According to Hamptons, this is a hangover from the challenging market of 2023, as 27% of homes sold last month were listed during last year. The report states that it is eight days slower to sell property in the South of England than in the North.

      In England and Wales, the percentage of homes sold above their final asking price in April was 27% – unchanged from last year’s figure. In London and the South, 25% of properties sold above their asking price last month, a positive annual change of 2%. Lower mortgage rates have helped boost activity. London sellers have been giving out greater discounts than other regions over the last eight years, but now the same proportion of London sellers are achieving their asking price as those in other parts of England and Wales.

      High mortgage rates pressure sellers to reduce prices, with price reductions peaking at 56% in October 2023. But price reductions in England and Wales are now at an 18-month low in April. 44% of homes were sold at a reduced price, close to pre-Covid levels when there was an average of 42%.

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      What is the Outlook for Property Prices in 2024?

      The majority of southern regions are displaying small price dips, but Hamptons has forecast that the price growth in these areas will move into neutral or positive territory over the next few months.

      However, the Hamptons Market Report also states that a sizable bounce back in average property prices isn’t likely in the short term, as high mortgage rates will still impact sales activity and prices, especially in the South of England. They believe that during 2024, transaction volumes will recover faster than prices.

      To find out more about the UK property market, take a look at our buy-to-let area guides, covering topics such as Derby investment properties and Bath investment properties.

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      Jessica Ferris

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      Jessica is a property content writer at RWinvest. Keeping a close eye on the UK property market, Jessica helps our readers stay informed and up to date on the latest market news and statistics.