House Prices – Latest News
Property website Zoopla have recently revealed that UK house prices have risen 8.3% in the last 12 months, making the average home price £256,600. That’s a slower rate of growth compared to March’s recent high of 9.6% year-on-year. But prices are continuing to rise faster than the average annual rate over the last five years. find a conveyancing solicitor HERE
Even though the market has shown signs of slowing down, it might just be time to check how much your home could be worth. You could be in for a surprise.
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What Is Happening To Property Prices?
Price of property coming to market has hit a fourth consecutive record of £367,501, up by 2.1% monthly (+£7,400). Average asking prices have risen more than £55,000 in the past two years, compared to a £6,000 rise in the two years before the pandemic
Activity levels remain strong and still significantly higher than pre-pandemic, though there are signs that the frenetic market is starting to ease:
- The number of buyers contacting estate agents in the month is 31% higher than the more normal 2019 market, but down 14% year-on-year
- Speed of market means available properties down 16% compared to last year and down 55% compared to 2019, with new stock most desperately needed for two and three bedroom semi-detached homes
- Sales agreed are up 12% year to date compared to the same period in 2019, and down 17% year to date compared to 2021
New Rightmove analysis tracks first-time buyer affordability and the impact of rising interest rates:
- Average monthly mortgage payments are back to being higher than rental payments after four consecutive interest rate rises, though historically low interest rates make mortgage payments only 11% higher than ten years ago , while rental payments are 40% higher
- Solo first-time buyers hardest hit, now needing a 34% deposit compared to a 25% deposit ten years ago
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August: Differences In Direction of Price Growth
Whilst UK house prices continue to rise, key indices report different directions of travel; Nationwide reports rise in annual growth rate whilst Zoopla records slight dip
The Nationwide house price index reported that the value of an average UK home rose by 11% to £271,209 in the year to July 2022. The annual rate of growth was higher than the 10.7% it calculated the previous month.
But the property portal, Zoopla, said that the price of an average UK home rose by 8.3% to £256,600 in the year to June 2022, a drop from the 8.7% it reported a month earlier.
Zoopla added that June’s price growth was the lowest figure since October 2021 and the slowest rate it had recorded this year. Whereas according to Nationwide, average house prices rose by 0.1% from June to July this year, the twelfth monthly increase in a row.
Robert Gardener, Nationwide’s chief economist, said:
“The housing market has retained a surprise degree of momentum given the mounting pressures on household budgets from high inflation, which has already driven consumer confidence to all-time lows.”
Mr Gardener referred to “tentative” signs of a slowdown in activity, thanks to a dip in the number of mortgage approvals for house purchases in June, but this was yet to feed through to the price growth figures.
Around the regions, Zoopla said that, at 11.1%, prices rose fastest in Wales over the past 12 months to June this year, with the south west of England and the East Midlands also recording double-digit growth of 10.9% and 10.2% respectively.
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Is The Property Market Slowing Down?
After the home-moving madness of 2021, there’s now a discrepancy between supply and demand. Savills recently reported that nine out of 10 current house hunters have been affected by a shortage of available properties.
Also, Propertymark reported its members had an average of 26 properties for sale per branch in June, compared to 50 in a ‘normal’ year.
The imbalance between supply and demand is also reflected in Rightmove’s ‘time to sell’ data; They estimate that homes took an average of 32 days to sell in June. This is down from 38 days a year earlier.
Experts predict that house price growth will slow down in the remainder of the year, with the cost of living crisis likely to impact on the number of homes being sold.
Is Now A Good Time To Move House?
If you’re thinking of buying a new property this year, there’s good and bad news.
- The good news is that low-deposit mortgages are still readily available. You might find it a little easier to get a home loan than before.
- The bad news is that it’s unlikely that houses will become significantly more affordable. Whilst experts expect slower growth, none are forecasting that overall prices will actually fall.
If you are thinking of buying a property, we’re here to help. find a conveyancing solicitor here.
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