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
UK House prices continue to trend upward this month, with February’s prices rising by .7%, the same incremental raise as the previous month. This brought the annual rate of house price growth to 1.2% in February, a welcome spike from the -.2% from the month prior. This positive rate of change is the first since January of 2023. House prices are currently sitting around 3% below the all time highs from the summer of 2022. The average house price rose slightly from £257,656 in January to £260,420 this February.
Looking ahead
What has prompted this upswing in the housing market? Well, as many predicted, the decline in borrowing costs had quite the effect. Industry data confirms that there has been an increase in mortgage applications at the beginning of the year and surveyors are reporting a rise in new buyer enquiries.
Despite this good news, it’s still difficult to gauge short-term prospects, largely due to the uncertainty surrounding the future of interest rates. Swap rates, which underpin fixed rate mortgage pricing fell sharply in December but have slowly climbed back up.
While borrowing costs are still well below the record highs from last summer, the recent upward trend is a bit worrying as it may derail the recovery the housing market has been experiencing.
However, the pressure on household budgets is easing and wage growth is now outpacing inflation. But with consumer confidence still fragile, it’s important to remember that it will take time to make up for the ground lost in the last few years.
Keep an eye on the market if you are planning to buy or sell property so you can strike while the iron is hot and take advantage of optimal market conditions.
Stay in the know
If you’re planning to buy or sell property, 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 – February 2024.
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