Following on from the early signs of slowing growth in May, June saw further evidence that the growth the property market has been experiencing was beginning to slow down. As you can see above, the annual price growth took a sharp decrease from the previous month of 5%.
This began a decline in price growth which would continue into the summer, as the rapid increase in the property market at the beginning of the year calmed down. Although there would still be positive price growth going forward, it would not reach the same highs as March and April.
Although there was still a supply issue, demand began to cool off as many potential buyers began going on summer holidays instead. Buyer inquiries fell for the first time in nine months, and the Bank of England reported mortgages were back to pre-pandemic levels.
The largest annual and monthly growth was in Scotland, which saw prices rise by 11.6% on an annual rate and 2.2% on a monthly rate. Yorkshire and the Humber saw prices fall by 0.4% from the previous month, the only region of the UK to show lowering prices.
In terms of the rental market, there were signs of continued strong growth for the rest of the year. We saw the highest annual rental price increase yet of the year, with Zoopla’s statistics showing a rise of 11.8%.
Although the housing market as a whole was beginning to cool off, the rental market stood out as being particularly strong in this regard.