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 September, annual house price growth experienced a modest slowdown, dropping from 10% in August to 9.5% in September, dropping to single digits for the first time since last October. Taking into account seasonal effects, prices remained unchanged month to month. This is the first month since July 2021 that a sequential rise wasn’t recorded.
The average house price dropped slightly from £273,751 in August to £272,259 in September.
Looking ahead
A market slowdown now seems all but imminent, with additional signs emerging last month. The number of mortgage approvals for home purchases has remained below pre-pandemic levels and new buyer enquiries declined as well. Despite anticipating this for months, the slowdown so far has been minimal. Adding to the fact that there has been a lack of stock in the market, price growth hasn’t been impacted too greatly just yet.
Lowered transaction costs will have an effect on stamp duty and, as a result, thanks to a continued strong labour market (and an unemployment rate at its lowest since the early 1970s), housing market activity and prices hopefully won’t be altered too much.
Many experts however say that putting too much stock in those hopes won’t end well. More signs are pointing to a market slowdown. Inflation is rising and showing no signs of stopping, which will only create additional pressure on household budgets and will push consumer confidence levels to record lows.
Trouble may be just around the corner as housing affordability comes into question. Saving up for a deposit has always been an obstacle for first-time homebuyers, but now that house prices are rising and wages can’t keep up, it will be even more difficult. Don’t forget about increasing interest rates as mortgage providers adapt to the ever-increasing Bank of England base rate, which might soon prevent many would-be homeowners from making monthly payments that would be required for their high-interest mortgages.
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 – September 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.