Uk House Prices Have Gone Up

last updated on

Uk House Prices Have Gone Up

UK House Prices Have Gone Up

House prices in the United Kingdom have witnessed a jump of about 24,500 pounds in a year and are at an average of 277,000 pounds. The upward movement was 0.3 percent in January, but the smallest increase since June amid inflation of 9.7 percent. Experts believe the price growth graph may take a southward turn in 2023.

Halifax, the biggest mortgage lender in Britain, said inflation cooled last month after following four consecutive months of more than 1 percent gain.

Even though the house price market has slowed down, inflation remained at 9.7 percent. The cost of living crisis is expected to come down. The market is gradually returning to normal levels and house price growth may dip significantly from 2023 onward.

Halifax managing director Russell Galley said affordability is at historically low levels now with the price rise of houses outstripping the earnings growth. In 2021, a record level of first-time homebuyers entered the market but one of the significant barriers to consider is the challenging deposit requirements.

He states that the situation may turn up more acute temporarily as the cost of living is increasing amid various reasons including the rise in interest rates and mortgage rates. The house prices may get some support with the limited supply of new units.

Data reveals a similar picture across the country. The house price inflation was 11.2 percent in January and it was the strongest January in more than a decade. The monthly growth dipped at 0.8 percent. Meanwhile, workers may come across higher tax payments as the national insurance rates may increase from April by 1.25 percentage points.

Economists and property experts believe house prices may not drop despite the rise in living costs. Barrows and Forrester managing director James Forrester stated the transactions are now returning to pre-Covid levels and any significant decline in house prices may not be witnessed soon.

EY Item Club chief economic advisor Martin Beck said 2022 will be a year of slow as the support of stamp duty holiday will be stripped this year the prices may rise due to higher interest rates as well as the rising cost of living.

Deposits will be the key and those who have a big deposit may rise above the rise of mortgage and living costs. Those who will not be having a big deposit may find it hard to save as the cost of living is rising.

The strongest performing was Wales this year and its annual house price growth is at 13.9 percent. The next was Northern Ireland with a 10.2 percent. Scotland was at 8.9 percent.

The most sought-after properties are those which are big and equipped with outside space. Meanwhile, with the professionals returning to offices, the apartments in London are becoming expensive. People are looking for a home nearby.

Trending Stories