Hold onto your hats folks, because the housing market is still a bit of a rollercoaster ride! The average house price in England and Wales has gone down a little, by 0.2% in May to £356,014. That means it’s £600 cheaper than the month before.

But don’t get too excited, because that’s still 3.3% lower than last year, meaning houses are still around £12,000 cheaper than they were a year ago.

The North-South Divide

The big news is that house prices aren’t falling evenly across the country. Some parts of the country are doing better than others. The North East is actually seeing prices go up compared to last year, while London and the South East are still struggling.

So what’s going on? Experts say it’s all about affordability. London and the South East have always been more expensive, and with rising interest rates making mortgages pricier, first-time buyers are struggling to get on the ladder.

Richard Sexton, a director at e.surv, says: “The much higher house price levels, affordability challenges and greater reliance on mortgage finance in these regions – factors that really impact first-time buyers whose prospects of buying have been facing headwinds for years now.”

Is Home Working To Blame?

It seems like the whole “work from home” thing is also playing a part in the house price drama. Some parts of the country are seeing more demand as people are happy to live further away from the office, while other areas are seeing less demand as people aren’t needing to be close to their jobs anymore.

What’s Next?

So, what does the future hold for the housing market? Experts say that a lot depends on what happens with interest rates. The Bank of England decided to keep interest rates the same for now, which has made mortgages more expensive.

Mr. Sexton says that “Less buyers, of course, has an impact on prices which we can clearly see being played out at a regional level.”

But, there might be some good news on the horizon for first-time buyers. With the next election around the corner, political parties are already promising to make it easier for people to buy their first home.

So, while the housing market is a bit of a wild ride right now, it’s looking like things might settle down a bit in the near future.