Monthly Market Snapshot: July 2023

Jordan Buchanan, Chief Operating Officer at PropertyPal commented on the market performance during July 2023:

“Transaction activity softened during July with only 1,700 properties being agreed for sale, a reduction of approximately 20% on normal levels during one of the core summer months. Prices for resale properties continue to follow a similar pattern to the broader inflationary aggregate, cooling to an annual rate of 6.6%. For new builds, prices are growing at a much more modest 2.8%.

Prices remain intrinsically linked to the mortgage rates. Borrowing costs are somewhat stabilising, despite the recent Bank of England rate rise, suggesting rates may be close to peaking. Nonetheless, mortgage rates in the 4% to 5% range are likely to remain for longer periods of time, unless there is a notable drop in inflation. Should this materialise, house prices are expected to weaken further in the coming months.”