New data examining the UK housing market has shown that annual house price growth in Bristol slowed to 4.2 per cent in February. This means that compared to the previous year, house prices were on average selling for 4.2 per cent more compared to the previous year.
However, this growth is far less than the year-on-year comparison for February 2022, when price growth was at 9.9 per cent compared to February 2021. The average house price in Bristol now stands at £335,100, according to the new figures from Zoopla.
Statistics show that Bristol's property trends align with the national pattern across the UK, where house price growth slowed to 4.1 per cent, down from 9 per cent. a year ago. The average property price in the UK is at £259,700.
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Quarterly statistics also showed a slight decline - UK prices were down 1 per cent in February 2023 compared to October 2022. However, despite the negative trend, Zoopla's report generally had a positive outlook. It predicts 500,000 sale completions in the first half of 2023 and at least 1 million sales in 2023.
Although the national economic outlook is still uncertain, it says the property sales market is seeing a return of buyers, with the demand for homes reaching its highest level since last October and the fallout of the mini-budget. In the UK, demand for properties is 16 per cent higher than this time in 2019, supported by a boost in supply, with 65 per cent more homes for sale compared to March last year and more sales in cheaper price bands.
Zoopla suggests that demand has weakened in areas such as Bristol, where prices jumped the most over the pandemic and are higher than the national average. Including the southern half of England and the Midlands, these markets are where higher borrowing costs have had more impact on buyer power, it says.
The report shows that the average homebuyer has 20 per cent less buying power than a year ago, and across the UK, there has been a 4 per cent fall in the share of sales at the top end of the market except in London, which bucks the national trend. Meanwhile, at the bottom end, a 5 per cent increase indicates that those looking to purchase are seeking out better value-for-money areas, smaller homes or supporting their purchases with larger deposits.
The boom in the lower end of the market is also thought to be partly driven by cost-of-living pressures encouraging some to down-trade from larger homes that are expensive to run and high rental inflation - up 11 per cent in the past year nationally. Buyers looking for better value for money are, on average, achieving an average discount of 4 per cent (£14,000) off asking prices.
Properties are also taking longer to sell, with the average time jumping by 71 per cent (15 days) compared to 12 months ago. In the South West, though, homes are selling quicker than in 2019, taking an average of 36 days to achieve an accepted an offer.
Commenting on the latest report Richard Donnell, executive director at Zoopla, said: “The housing market is arguably more balanced than it has been for more than three years. Levels of supply have recovered, and buyers and sellers are not miles apart on where they see pricing, and this means deals are being agreed at an increasing rate.
"Prices are drifting lower compared to a year ago, but fears of a major downturn in prices are overdone. Falling mortgage rates and a strong labour market are supporting activity levels from committed movers who need to be realistic on price if they are serious about moving home in 2023. We expect to see levels of activity continue to steadily improve over Easter and into the summer and H2."
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