The UK housing market showed signs of stability in April, with average asking prices rising modestly despite mounting global uncertainty and higher borrowing costs. Rightmove data indicates that while demand has softened and supply has increased, overall activity remains close to seasonal norms. Affordability improvements and renewed lender competition are helping to offset the impact of higher mortgage rates.
- Asking prices rose 0.8% in April to £373,971, below the 1.2% seasonal average
- Prices are 0.9% lower than April last year
- Two-year mortgage rates increased from 4.25% to 5.42%, adding £235 per month
- Buyer demand is down 7%, with supply at an 11-year high
- Sales agreed are just 3% below average, with listings down 1% year-on-year
- Wages rose 3.9%, with more mortgage deals returning as lenders cut rates
Original article source: Forbes
According to the most recent data, the market is not losing direction but rather adjusting under pressure.
Rising mortgage rates have clearly had an impact. Demand has softened, and sellers are facing more competition than at any point in the past decade. That combination naturally limits how far prices can stretch, particularly in a season that typically delivers stronger upward momentum.
But the more telling signal sits beneath the surface. The fact that transaction levels are still relatively normal for this time of year indicates that decisions are still being made based on underlying needs. People are continuing to move, even as borrowing costs rise and global events create uncertainty. That kind of behavioural consistency is often what stabilises a market during periods like this.
There is also a quiet move happening on the affordability side. Wage growth, more flexible lending criteria, and a gradual return of mortgage products are starting to ease some of the pressure created by higher rates. The recent move by major lenders to reduce rates, even modestly, is an early indication that competition is returning to the lending market.
At the same time, increased supply is beginning to rebalance conditions. Now that buyers have more options, sellers must carefully consider their prices in order to attract interest. After several years of constrained stock, this is a notable reset. It may slow headline price growth in the short term, but it creates a more functional and transparent market overall.
This kind of environment tends to be more constructive than periods of rapid price inflation for long-term investors. Entry points become more negotiable, stock levels improve, and decisions can be made with less urgency and more clarity.
In that sense, what we are seeing is not weakness, but recalibration. A market absorbing external shocks, adjusting to higher borrowing costs, and continuing to function with a steady level of activity.
