Every year in August the housing market quietens down. In fact, over the last ten years there has been a slight fall every year around this time. According to Zoopla, the average house price fell by £5,000 this month, but that doesn’t mean house prices are going to start falling further for the rest of this year.

House prices are currently rising faster than the five-year average according to the property portal and the average house price is now at £256,600 with the most gains seen in the UK’s most affordable markets. The portal predicts a 5% growth for the rest of this year and this is despite the rising cost of living and interest rate hikes.

Over the last 12 months, UK house prices have risen by 8.3%. This rate is slower than the rate of growth we saw in March at 9.6% year-on-year. Despite mortgage rates on the rise and the pressure of high inflation and a high cost of living, there are plenty of buyers wanting to move now. Demand has slowed a little, but it is still 25% higher than the five-year average.

The housing market is still strong and showing signs of resilience – and Zoopla has now predicted higher house price growth than previously thought. The UK is likely to hit 1.3 million sales this year and we can expect normal levels of activity as we head towards 2023.

Demand is still high and there still isn’t enough stock, but the number of homes for sale is recovering after an exceptional two years following the start of the pandemic.
Strong gains can be seen in the most affordable areas of the UK with values rising the fastest in Wales, up 11.1%. In Scotland values are rising at around 7.5% and 5.6% in Glasgow.

London is still the UK’s most unaffordable housing market with prices rising just 4% year-on-year. Aberdeen remains the only city that has experienced negative house price growth over the last 12 months, with house prices down -1.6%.