The new house price index published by property site Zoopla shows that the average price of a home in the UK has risen above £250,000, although there are indications that price growth is slowing.
This marks the first ever time that average UK prices have gone above £250,000, highlighting the degree to which demand stimulated by the Covid-19 pandemic, coupled with the nationwide housing shortage, has driven prices up. However, although this latest index reveals continued rises in prices, it also shows signs that the cost of living crisis is starting to kick in, which will lead to a slowing down in house price increases.
Sarah Coles, a senior analyst for the financial services provider Hargreaves Lansdown, told Mortgage Strategy that:
“We’ve been expecting a sustained slowdown in price rises. The question was always ‘when’, rather than ‘if’. Rising prices and increasing mortgage rates have pushed mortgage payments up significantly.”
Coles went on to point out that prices for other essentials are also increasing, which means that prospective homebuyers are being required to rethink what is within their reach.
The analyst then added that these burdens on people are being exacerbated by the fact that major mortgage lenders are factoring price rises into affordability calculations, which is making the borrowing conditions tougher for most people.
According to the most recent figures, average monthly repayments for mortgages have gone up by £71.
Mortgage advisors with the right CeMAP training and market knowledge are more necessary than ever due to the tricky combination of circumstances that buyers face.