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?
The UK housing market continues to enjoy accelerated house price growth. In June, annual house price growth skyrocketed, hitting 13.4% in June, the highest level since November 2004.
Month on month, prices are up 0.7% from May’s 10.7%. The average house price in June was £245,432, up from £242,832 in May.
Part of the reason why growth is so high is because at this time last year, we were at the height of the pandemic and the country’s first lockdown weakened the market, but this year it’s going strong. June was the third month in a row that prices rose, increasing 5% since March.
This past quarter, all regions of the UK experienced accelerated house price growth with Northern Ireland and Wales seeing the biggest gains (14% and 12.4%, respectively). Scotland experienced the weakest growth at just 7.1% with London coming in slightly higher at 7.3%.
Deposits still prove a barrier to owning a home
Even though house prices are sitting at record highs, monthly mortgage payments are relatively affordable thanks to low rates. The issue with many hopeful homebuyers is the initial deposit, with many often struggling for years to save at least 10% to put down on a home. Luckily, more and more low deposit mortgages are becoming available thanks to the government’s Help to Buy scheme so more people can afford getting on the property ladder.
Looking ahead
With restrictions being lifted and life returning to normal (as much as possible) demand should remain consistent, with borrowing costs remaining low. This is good news in the short-term, but looking further into the future, it’s harder to predict.
Once the stamp duty land tax holiday expires at the end of September, experts predict activity will decrease as many people moved their house search forward to take advantage of the scheme. Unemployment is also expected to rise toward the end of the year, which could have a negative impact on housing market activity. But lifestyle preferences may still play a part after the pandemic, with people seeking bigger homes with outdoor spaces.
Stay in the know
Check back monthly for our regular update on the nation’s property prices.
If you’re planning to buy or sell property this year, contact an adviser 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 June 2021.
Mortgages for Doctors and Dentists
Always remember to visit our site monthly for your regular update on the nation’s property prices.
If you’re planning to buy or sell property this year contact an advisor 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.