Property Price Update - April 2022 | Dental & Medical Financial Services

Property Price Update – April 2022

Monitoring the housing market is very important for many, particularly those doctors and dentists who are looking to purchase their first home or who are investing in buy-to-let properties. Our monthly Property Price Update gives you a summary of what the experts are saying.

This article does not constitute advice. Professional advice should be taken prior to acting on any part of it. Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.

What’s going on in the UK Property Market?

In March, annual house price growth increased yet again, for the eighth consecutive month in a row, from 12.6% in March to 14.3% last month, a monthly change of 1.1%. The change last month is the strongest pace of increase since November 2004.

The average house price in March was £265,312, a healthy increase from £260,230 in March. With last month’s figures, prices have increased by over £33,000 in the last year and are now 21% higher than before the pandemic started at the beginning of 2020.

The housing market, much to many people’s surprise, has not taken a turn for the worse and in fact, has actually maintained the momentum it’s had for the better part of a year despite the increased pressure on household budgets and rising borrowing costs. But, mortgage approvals are above pre-pandemic levels and robust demand combined with limited supply of homes available are responsible for keeping prices rising.

A strong labour market and lockdown savings as the basis for deposits might still be driving some activity and influencing the state of the housing market. The unemployment rate is also down and wage growth has accelerated, even though it is still below inflation.

Looking ahead

Despite the current upward trends, experts still expect housing market activity to slow down this year. The strain on UK households will only intensify as inflation shows no sign of slowing down and with the possibility of energy prices remaining high or even rising, inflation rates might even hit double digits before the year is over. On top of that, as long as labour market conditions remains strong, the Bank of England will most likely raise interest rates further, a move that will undoubtedly influence interest rates and slow down borrowing.

Regional Performance

All regions in England saw an acceleration in annual house price growth, with the South West remaining the strongest with their highest growth since 2004 of 14.4%. East Anglia followed closely with 14.2%.

In the north, Yorkshire & the Humber was the strongest performing region, with their strongest rate of growth since 2005 as prices rose 13.5% year-on-year.

London once again brought up the rear, however, there was a jump in annual price growth in the first quarter of the year from 4.2% in Q4 2021 to 7.4%.

Stay in the know

If you’re planning to buy or sell property this year, check back monthly for our regular update on the nation’s property prices and contact one of our advisers for personalised advice.

At Dental & Medical Financial Services, our experts are dedicated to helping our clients select the right mortgage deal for your needs. If you’re ready to take the first step toward home-buying, get in touch with us today.

Check back next month

There’s never been a more important time to keep an eye on the market and the changes from month to month, so be sure to check back monthly for all the updates on the UK property market.
Figures quoted from Nationwide House Price index March 2022.