Cancelled: Spring housing market boom

The traditional spring surge in the housing market will be a ‘non-event’ according to Hometrack, which reported house prices fell by 0.2% in March.

The annual rate of house price growth, 0.4%, is now at its lowest level since March 2006, the real estate market researcher said.

‘The likelihood of any sustained increase in demand over the spring period is very limited,’ said Richard Donnell, Hometrack’s director of research. 

Uncertainty in the financial markets, affordability pressure and a lack of confidence among buyers would continue to suppress the housing market, Donnell said.

Hopes February’s upswing in new buyers registering with estate agents would continue into March and kick start the market were dashed by figures which showed a fall of 6.7% from February. 

‘Some bounce-back in market activity was inevitable after what has been a prolonged period of weak market activity,’ Donnell said. ‘However, the growth in demand over the last two months is only a third of the level seen in previous years so the spring market is likely to be a non event this year.’ 

The average amount of time a property stayed on the market was unchanged since December at 8.5 weeks.