A healthy but cautious springtime market
Market overview - prices still on the up, but Ukraine crisis and inflation could lead to much slower growth.
With 2022 well and truly underway, we’ve seen a slower than expected start to house price movement and while it’s still a sellers market, uncertain times and rising inflation could slow things down and dampen demand.
As we mentioned in our January blog on 2022 property trends house prices are expected to continue to rise, albeit more modestly than in 2021. This year has actually got off to a slower start, with the crisis in Ukraine bringing an element of uncertainty and nervousness to the market. Rising inflation will also have an impact on new buyers entering the market, but the continued lack of supply of new properties will mean that demand will remain strong.
According to the Halifax Price Index, the average UK house price in February stood at £278,123, after an annual increase of 10.8%. Since the start of the pandemic, average property values jumped by £38,709 and over the last 12 months alone house prices gained on average £27,215. Note, these are averages based across the whole of the UK, so there will be regional differences. But this is the biggest one year cash rise recorded in over 39 years of the index’s history.
Generally speaking though, what all this means is that the underlying market remains strong, with monthly price growth averaging 0.5%. Buyers are flocking to the market, according to RICS (Royal Institute of Chartered Surveyors) with a fifth consecutive monthly increase in buyer interest, but this has been matched by a sustained 10 month drop in the number of properties going up for sale.
So, if you’re looking to buy or sell, come and talk to the experts here at Snowgate. For sellers, make sure you use our expertise for a professional valuation. If you’re a first time buyer, don’t forget about the government’s 95% mortgage scheme designed to help you get on the property ladder with just a 5% deposit.