Demand remains steady as housing market shows resilience

The housing market has been very resilient over the last year given the rise in mortgage rates says Zoopla’s latest analysis of the property market.

Unemployment has stayed low by historic standards, and there are a relatively small number of people struggling to pay their mortgage and falling into arrears despite wider cost of living pressures. Demand for property is running at 6% and sales agreed at 8% both higher than last year. Meanwhile, Halifax reports that house prices have stayed relatively flat for the third successive month in June, with the slight fall equivalent to less than £500 in cash terms.

On an annual basis, house prices posted a seventh consecutive month of year-on-year growth, with the average UK property value now standing at £288,455. For now it’s the shortage of available properties, rather than demand from buyers, that continues to underpin higher prices.