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.
UK Property Market Update
The new year kicked off with further slowing in annual house price growth, dropping from 2.8% in December to 1.1% in January, equating to a .6% fall month-to-month and marking it as the fifth consecutive month of price falls. Compared to the house price peak in August of 2022, prices are down 3.2%. The average house price dropped from £262,068 in December to £258,297.
Future Outlook
Despite the continued decline, there are some signs that mortgage rates will soon stabilise. After the mini-budget last autumn, mortgage applications fell sharply and it will be difficult to recover or gain momentum at all with the current economic climate. Real earnings are likely to continue falling and many predict that the labour market will only weaken as the economy declines. On top of that, mortgage rates are impacting mortgage affordability as they are getting costlier to service. If rates continue to decline and house price growth remains weak, home buying should soon become more affordable.
One of the biggest challenges of becoming a homeowner has been and will remain raising enough money for a deposit. With the nation in the middle of a cost of living crisis, that isn’t likely to change, especially since prices in the rental market are rising at the strongest pace on record. Additionally, since wages aren’t rising at a consistent pace with inflation, saving for a deposit might remain out of reach for many. Consistently, all regions across the nation are experiencing issues with affordability.
In terms of government schemes, the Help to Buy Equity Loan scheme, which helps people with smaller deposits buy new build properties is set to end in March, which could lead to reduced market activity. However, the mortgage guarantee scheme, which helps identify and reduce the expense of higher loan-to-value mortgages, has been extended until the end of this year. There’s just no way to tell exactly how much of an effect these schemes will have on the housing market.
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 – January 2023.
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 contact with us today.