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 June, annual house price growth slowed modestly, continuing the recent trend from the recent months. However, it still remained in double digits, dropping from 11.2% in May to 10.7% in June. House prices rose just slightly, 0.3% month-on-month from £269,914 in May to a record high of £271,613 in June, making it eleven months in a row that prices increased.
Looking ahead
However, there are some signs of a slowdown. The number of mortgages approved fell back to pre-pandemic levels and surveyors have reported fewer new buyer enquiries as well. Despite this, the housing market has still retained momentum. This has come as quite the shock as UK households are under increasing pressure, with lower budgets thanks to sky-rocketing inflation and increased energy bills, and consumer confidence now at a record low.
The strong labour market, as usual, has helped, with the job vacancies exceeding the number of unemployed people, with the unemployment rate close to 50-year lows. Concurrently, the supply of homes on the market has remained low which has contributed to the increase in house prices. This is only expected to slow further with the pressure households are under slated to get worse — with inflation predicted to reach double digits by the end of the year and the very real possibility that the Bank of England will once again raise interest rates. This will undoubtedly have a cooling effect on the market once mortgage rates shift as well.
Slow growth affecting all regions
Regional house price data for Q2 indicates that there’s been a softening in annual house price growth in the majority of the UK’s 13 regions.
The strongest performing region was the South West, overtaking Wales, with house prices up 14.7% year-on-year, a marginal increase from the previous quarter. East Anglia followed closely behind with annual price growth remaining at 14.2%. Wales, Northern Ireland, and Scotland followed behind with 13.4%, 11%, and 9.5% respectively. England’s house price growth slowed to 10.7%.
Despite the South West performing the strongest, southern England saw weaker growth than northern England. Within the northern region, the North West performed the strongest, with price growth hitting 13.3%. It’s no surprise that London remained the weakest performing UK region, with annual house price growth dropping to 6.0%.
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 – June 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.