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 August, annual house price growth bucked the trend from recent months, and decreased an entire percentage point from 11% in July to 10% in August. However, taking into account seasonal effects, prices rose .8% month on month, making it the thirteenth month in a row that prices increased monthly. Price growth remained in the double digits for the tenth consecutive month as well. The average house price rose ever so slightly from £271,209 in July to £273,751 in August. Over the past two years, the average house price has increased by nearly £50,000.
Looking ahead
After months and months of expectations, it seems like the fear of experts that the market would slow is finally coming to fruition. There are signs that the market is losing steam, with fewer new buyer enquiries being reported and the number of mortgage approvals for home purchases has fallen below pre-pandemic levels. Luckily, the slowdown so far hasn’t been drastic, and that combined with the low supply of homes available on the market, has supported the sustained price growth.
Again, though, experts aren’t sure how much longer the market can hold on, with the cost of living crisis and predictions that inflation will not only remain in double digits for the foreseeable future, but even skyrocket into the twenties next year. And the pressure for the Bank of England to increase interest rates won’t help matters as the increased rates are already hitting mortgage rates.
Impact of energy price cap increase
From 1 October, there will be an 80% increase in the energy price cap on the unit price charged to consumers. Undoubtedly, this will impact the running costs of households and result in rising energy bills for homeowners. Across all rated households, prices are expected to rise, even energy-efficient properties.
Of course, these increases in energy costs coincide with mortgage interest rate hikes, soaring inflation, and sky-high living costs. With household budgets facing significant pressure, it’s only a matter of time before the government increases support. Along with addressing the rising cost of energy bills, consumers could also contribute by improving the energy efficiency of their homes. If energy efficiency improvements are incentivised, energy bill increases could be limited and help the UK reach its carbon emissions targets.
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 – August 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.