Property & Construction Daily

The Property & Construction Daily provides a sector-specific comment from leading analyst Alastair Stewart. His daily perspective provides a round-up of market statements, news, economics and views from the property and construction sectors.

February 20, 2023

Prices hold firm as buyers return – Rightmove | Fortnight ahead

Economic data

Housing market. House prices rose marginally (actually, by a mere £14 to £362,452) from January to February amid mounting evidence of a “better than expected market”, according to the latest Rightmove House Price Index. The Y/Y increase declined to +3.9%, from +6.3% in January. According to the UK’s largest property portal, prices normally move upwards at the start of the year, but the near freeze may be a sign that potential vendors are adopting a more conservative approach, but with little evidence of prices actually falling. The number of people contacting agents is up by 11% in the last two weeks compared with the same period in 2019’s more normal market. Meanwhile, the number of sales agreed continues to rebound, and is now just 11% down from 2019’s levels, recovering from 15% down at the start of the year, and 30% down in the aftermath of the mini-budget. Average rates for a 15% deposit five-year fixed mortgage are now 4.82%, down from October’s 5.90%. “Surprisingly”, according to Rightmove, prices in the first-time buyer sector are recovering better (+0.3% M/M) than the discretionary upper-end sector (-0.8%).

Feb 23 Average asking price trends20 Feb 23 - Fortnight ahead Building & Construction Daily
Download Insight as PDF

This communication is provided for information purposes only, and is not a solicitation or inducement to buy, sell, subscribe, or underwrite securities or units. Investors should seek advice from an Independent Financial Adviser or regulated stockbroker before making any investment decisions. Progressive Equity Research Ltd (“PERL”) does not make investment recommendations.

Opinions contained in this communication represent those of PERL and/or our affiliates at the time of publication and PERL does not undertake to provide updates to any opinions or views expressed. PERL does not hold any positions in the securities mentioned in this communication, however, PERL’s directors, officers, employees, contractors and affiliates may hold a position,  and/or may perform services or solicit business from, any of the companies or related securities mentioned.

Any prices quoted in our research are as at the previous day’s close.