With house prices seeming to be coasting along a rising trajectory, it’s no wonder many are starting to assume that what goes up must come down. But should we expect the bottom to fall out of the housing market anytime soon?
A recent assessment by Zoopla showed that house prices and sale numbers are expected to continue slowing in 2022, partly due to the cost of living. However, high buyer demand is keeping the value of a typical UK house above the 5-year price rise average.
Lifestyle changes brought about by the pandemic explain some of this stability, with flexible working arrangements, early retirement, and changing priorities still encouraging people to move. Additionally, rising interest rates will prompt many approaching the end of a generous fixed term to lock in a lower mortgage rate by moving now.
Stricter rules around lending have also strengthened the price bubble, putting the market in a different position than when we last saw a crash during the 2008 financial crisis.
This is all excellent news for sellers, but is this slow-but-steady rise reflected in other areas than traditionally strong markets such as London and the South East?
Zoopla’s House Price Index does show that house values are evening up across the UK, with the biggest gains most apparent at the lower end of the market. Therefore, homeowners in hotspots like Wales, the South West, and the Midlands are also benefitting from the moving trends that have developed over the past few years.
Right now, the average UK house price stands at £256,600. However, certain cities and regions are seeing steeper increases, so booking a valuation is the only way to know exactly how much your home is worth.
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*Date based on Zoopla’s August 2022 House Price Index