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According to the UK House Price Index Summary for April 2023, the annual change in average UK house prices was 3.5% in the 12 months leading up to April 2023, compared to 4.1% in the previous 12 months. The average house price in April 2023 was £286,000, £9,000 higher than a year ago but £7,000 lower than the peak in September 2022.

Nationwide report that annual house price growth declined in May, with a 0.1% month-on-month decrease in house prices. The annual rate of house price growth dropped to -3.4% from -2.7% in April. The report highlights that this decline is mainly due to base effects, as prices remained relatively stable when accounting for seasonal factors.

“The local housing market is relatively well-balanced in terms of housing stock.”

In the last year, there have been 1,038 sales in Harrow, which is equivalent to around 2 per cent of the total private housing stock changing hands over the period. Of these sales, 47 per cent were flats and 53 per cent were houses. This means that the local housing market is relatively well-balanced in terms of housing stock. This helps keep the market liquid during times of stress and contributes to supporting capital growth.

There’s no doubt that the UK housing market currently faces headwinds, including higher future Bank Rate expectations and the likelihood of increased mortgage rates. However, the overall outlook suggests a relatively soft landing due to solid labour market conditions and healthy household balance sheets.