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 July, annual house price growth stayed on trend from recent months, making it twelve months in a row that prices have increased. Not only did it remain in double digits for the ninth month in a row, it rose slightly from 10.7% in June to 11% in June, with a monthly change of 0.1%. The average house price fell ever so slightly from £271,613 in June to £271,209 in July.
Surprisingly, the housing market has retained momentum despite high inflation putting the pressure on household budgets. Consumer confidence is at an all-time low and there are already tentative signs of a slowdown in activity. So far, in spite of the dip in the number of mortgage approvals for house purchases in June, price growth has yet to be affected.
Strong labour market conditions, a near 50 year low unemployment rate, and the number of job vacancies near record highs are supporting demand. And the limited stock of homes on the market has helped keep upward pressure on house prices.
Looking ahead
Experts continue to expect that the market will slow down as the increased strain on household budgets tightens in the coming quarters. Inflation is trending toward reaching double digits before the end of the year and the Bank of England will most likely raise interest rates further, which will almost certainly contribute to the cooling of the market if this feeds through to mortgage rates eventually.
Buyer Activity
House price growth is still outpacing earnings by a wide margin, which has only made saving for a deposit even harder. Combined with higher interest rates, it’s already pushed up mortgage repayments relative to incomes.
Opportunity for Buy to lets
Buy to let purchases involving a mortgage are still higher than pre-pandemic levels. This is most likely due to the fact that rental demand remains strong. Rental rates are on the rise, which may be why more landlords are entering the market, as property is often seen as a way to protect against inflation.
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.
Figures quoted from Nationwide House Price index – July 2022.
Mortgages for Doctors and Dentists
If you’re planning to buy or sell property this year contact an advisor for personalised mortgage advice. Use our Mortgage Tool to search for a deal that suits your circumstances.
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.
