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 May, annual house price growth continued the slowed-down price growth from the previous month. Even though there was a slight drop, annual house price growth still maintained double digits, falling from 12.1% in April to 11.2% last month. House prices still rose 0.9% month-on-month from £267,620 in April to £269,914 in May. This makes it ten months in a row that prices increased.
Surprisingly, the housing market has maintained steady momentum in May. With the increased strain on household budgets because of soaring inflation and increasing borrowing costs, many expected activity to slow dramatically. However, strong labour market conditions are supporting demand, with the unemployment rate falling to a 50-year low and available vacancies at a record high. Coupled with a low supply of homes on the market, the trend of increasing house prices continues.
Looking ahead
Experts continue to forecast that the housing market will slow in the months ahead. Household finances will likely stay under pressure as inflation is set to hit double digits in mere months if the trend continues. Consumer confidence has already hit record lows and isn’t likely to recover anytime soon. The Bank of England is expected to raise interest rates further, one more factor that could affect the market if mortgage rates become affected.
Looking back
In light of the Queen’s Platinum Jubilee, Nationwide looked back to 1952 when they first started producing housing data. They found that current average house prices are 4.3 times higher when adjusted for inflation. Back then, only 32% of households owned their own home compared to 65% today and the typical house only cost four times average earnings as opposed to today’s 6.9 times cost. Some good news? Borrowing costs have dropped from 4.0% to 1.0%.
Home improvement
For many people, moving home isn’t an option for any number of reasons, however, they are looking at ways to improve their current living situations.
Since space is at a premium, many homeowners are looking to add or maximise space, while others wish to improve energy efficiency — a desire that could pay dividends as energy costs continue to surge in the current economic climate.
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.
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 May 2022.
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.