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 happening in the UK Property Market?
In November, annual house price growth slowed to 4.4%, down from 7.2% in October. Prices fell 1.4% month on month — beating last month’s decrease and taking the title of the biggest drop since June 2020. The average house price dropped from £268,282 in October to £263,788 in November.
Much of this steep drop can be attributed to the mini-Budget despite the stabilsation of the market. Interest rates for new mortgages still remain high and the momentum that kept the market going throughout the pandemic and afterwards has finally slowed down. Even though it has been stretched across the country already, affordability of properties has also come into question as households are really feeling the pressure from inflation and the resulting cost of living crisis.
Experts predict that the market will continue to be subdued over the next few quarters as inflation isn’t expected to slow down any time soon and many expect the Bank of England to raise rates even further in an effort to help mitigate the effects of inflation on the economy.
As it has been for the last few years, the future of the housing market will depend on the performance of the broader economy. But all hope is not lost. Recently, long-term borrowing costs have dropped and might continue to do so, especially if investors keep looking to the Bank of England base rate to manage their expectations.
Looking ahead, labour market conditions will likely soften due to the weak growth outlook, but the good news is that unemployment is still being reported at near 50-year lows. And with many people locked into fixed-rate mortgage deals, households are expected to remain protected from high borrowing costs. Low supply on the market will also help contribute to demand and support price growth.
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 – November 2022.
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.