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?
Annual house price growth dipped only slightly last month, with growth remaining in the double digits. Growth fell from 10% in September to 9.9% in October. Month on month, prices have not changed significantly, with just a 0.7% increase.
The average house price in October was £250,311, up from £248,742 in September. The average property price has increased by more than £30,000 since the pandemic first began, passing the £250,000 mark.
Despite the stamp duty land tax (SDLT) holiday coming to an end, the demand for homes has remained strong. Mortgage applications hit 72,645, 10% more than the average reported in 2019, combined with the supply shortage on the market, this explains why price growth continues to flourish.
Looking ahead
As is the theme for this year, the outlook for the remaining months of 2021 remains uncertain. If the labour market remains strong, then we might still be looking at a fairly active market, especially considering many factors pushing people to move house are still top of mind for homebuyers. However, most government support has now been scaled back or withdrawn and consumer confidence has weakened, partly due to inflation pushing up the cost of living.
There has been talk about the Bank of England increasing the base rate in the near future — most likely it will rise from 0.1% to 0.25% or even 0.5% before the end of the year, hitting 1% within the next 12 months.
Even if the economy continues to improve, an increase in interest rates might have a cooling effect on the market, but the full effect might be limited because only current borrowers with a variable or tracker rate would be affected. New buyers would need to carefully consider their options and weigh the stability of a fixed rate against the potential volatility of a rate that follows the BoE.
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 October 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.