House prices drop 1.6% annually in England and Wales

House prices in England and Wales have fallen by 1.6% annually, with the average house price across the two nations standing at £360,175, e.surv has found.

The firm’s house price index also revealed that despite this drop, prices increased by 0.4% month-on-month in June.

e.surv added that with these figures in mind, the housing market is continuing to build "positive momentum".

Director at e.surv, Richard Sexton, said: "Our data shows an improving picture for the market in England and Wales and one that we expect to further improve over the coming months. In June, the average sale price of a home in England and Wales climbed by nearly £1,500 (0.4%) to £360,175. This is the strongest performance for nearly a year.

"Prices are now within 5% of the previous peak reached in October 2022. June’s 1.6% decrease was a full percentage point improvement on May and the strongest performance since July 2023."

Between April and May, the North West (0%) and Wales (0.4%) were the only regions to see positive or no change in annual house prices, while the South East (4.7%) and London (3.7%) were the worst performers in the same period.

London continued to retain the highest house price by region in the UK, standing at £672,049 in May.

Monthly, there was growth in house prices across the majority of regions, with only London (0.1%), the North East (0.6%), the East Midlands (0.2%) and the North West (0.2%) recording monthly drops in house prices.

Looking ahead, e.surv said that a change of Government is expected to lead to continued growth in the housing market.

Sexton added: "Going forward, in light of the Labour win, we should see further improvements in buyer sentiment as the government sets out to deliver on its manifesto pledges. These are ambitious and will take time but include creating a number of new towns, rethinking the green belt, mandatory targets for local authorities, a freedom to buy scheme, and a pledge to lower the stamp duty threshold for first-time buyers in April 2025.

"Also, we may now see action from the Bank of England on interest rates, given the improving inflation picture, which will improve affordability for buyers."

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