According to the Halifax house price index, house prices reached a record high of £276,759 at the beginning of 2022, this is despite growth in the market has been slowing compared to subsequent months.
Although growth was only 0.3% in January, the lowest increase since last June, growth still remains positive and has increased by 9.7% on an annual basis.
Transactions increase to pre-pandemic rates
We have seen transactions prices increase by 26% since the pandemic, which meant that prices have increased by £24,500 compared to February 2021, and £37,000 higher than in 2019.
Since property prices peaked in 2021 transactions are now returning to normal levels, as the cost of buying property continues to exceed far beyond earning growth. Although many first-time buyers were able to get onto the housing ladder last year, for many it still remains a struggle for would-be buyers to save up for the deposits required by mortgage companies.
A slight slow-down was anticipated as rising energy, food, and talk of increased interest rates have made it more difficult which has led to a decrease in property purchases. Which will result in house prices starting to slow to a lower rate of 0.3%, the slowest since June 2021.
Shift back to the city
However, there has been a shift again in buyer’s criteria, people are starting to go back into work and so are looking to live closer to work in Cities such as London, with some estate agencies predicting that house prices will remain high during the first six months of 2022.
If you are looking to purchase a property this year or are looking to relocate why not contact Enable Independent who will be able to look at the entire market to find you the best deal.
Your home is at risk if you do not keep up the repayments.