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 April, annual house price growth slowed for the first time in recent months, breaking the trend of the previous eight month long run of increases. Despite the slight decline, it’s still the eleventh time in the past twelve months that the growth rate has hit double digits.
Annual house price growth is down from March’s 14.3% just slightly to 12.% last month. House prices rose still rose 0.3% month-on-month from £265,312 to £267,620. This makes it nine months in a row that prices increased, even if it is the smallest uptick since last September.
The housing market has remained stable, with mortgage approvals still in the pre-pandemic levels. Labour market conditions are supporting demand, plus the unemployment rate has fallen back to pre-COVID lows with employment growth remaining strong. Stock is still low in the housing market, which has contributed to the continued upward pressure on house prices.
However, it’s still surprising that conditions have remained so buoyant, given the fact that household budgets are under pressure and consumer confidence has taken a hit. On top of that, housing affordability has waned because house price growth has been outpacing income growth by a vast margin over the past two years, and more recently, even though they’re still low by historic standards, borrowing costs have increased.
Looking ahead
Experts continue to expect that the housing market will slow in the quarters ahead. If global energy prices remain high, inflation is expected to rise further, with a real chance that it will reach double digits before the year is out. And the squeeze on household incomes will intensify alongside it all. Finally, as long as labour market conditions remain strong, the Bank of England will most likely raise interest rates further, one more thing that could affect the market if mortgage rates become affected.
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.
Figures quoted from Nationwide House Price index April 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.