In 2022, we saw the busiest ever start to the housing market, and there has been no sign of things slowing down since. Following the COVID-19 pandemic, we’ve seen economic headwinds emerging from all angles of the UK property market, and an increase in price averages as a result. The average asking price for a house in the UK this month stands at £368,614 – a historically high figure.
Why do asking prices keep rising?
It’s easy to assume that the large and growing gap between supply and demand is the reason behind asking prices rising. So, if you’re looking to move, now may be the best time ever to put your house on the market.
Will prices continue to rise?
With the battle between supply and demand ongoing, and the property market gaining more strength and momentum than ever, growth and activity are unlikely to slow down any time soon.
However, there are more new property listings coming to the market compared to last year, which gives buyers some fresh choice. This could slow down the pace of growth as we progress through the second half of the year.
Cost of living increases and inflation are also conjoining factors which are likely to affect the affordability of homes across the UK.
“The exceptional pace of the market is easing a little, as demand gradually normalises and price rises begin to slow, which is very much to be expected given the many record-breaking numbers over the past two years,” Rightmove director, Tim Bannister says.
Is it possible to get a good mortgage deal?
After a competitive year in 2021, where mortgage rates fell consistently as lenders fought to offer the cheapest deals to buyers with large deposits – things are beginning to change.
Rates have been rising off the back of five increases to the Bank of England base rate, with the cheapest rates now around three times higher than the historic lows reached last Autumn.
What will happen to house prices in the remainder of 2022?
Experts predict that house price growth will begin to slow down as 2023 approaches. Rightmove suggested that a combination of affordability constraints and an expected abundance of properties coming on to the market could result in house prices falling slightly in upcoming months.
Are you looking to start your property journey this summer? Speak to one of our friendly agents today.
