Nationwide noted today that the annual rate of house price growth for the UK now stands at 12.6% compared to February last year, increasing 1.7% from January 2022. With the average house price across the UK now exceeding £260,000. This therefore shows an increase of nearly 20% from February 2020, which for the average UK home could be around £44,138. With March being the best month to market your home, there is a high chance that the market will continue to be strong as stock is still limited, pushing prices higher.
Due to the change of interest rates that we saw last month, we may see an increase in people looking to move before the rates grow more, which is expected. If you are thinking about buying a new home, it could be beneficial to speak to a financial advisor now as it may be cheaper for you to move sooner rather than later.
What does this mean for first time buyers?
For first time buyers, they may find it harder to not only save as the cost of living is increasing but also to be able to qualify for a mortgage on a property that meets their requirements. If you would like to know how much stamp duty you will need to pay, click here.
According to Rightmove (2022), buyer enquiries increased by 16% in February 2022 compared to the year prior. This means with this high demand from potential buyers, sellers are still in a very strong position when coming to the market. There is still a low number of available properties, therefore if you are thinking of selling you may find your property reaches a sold price higher than you expect as we are seeing some homes having multiple offers from different applicants. This can leave you in a better position as you can choose which buyer is best for you and your next home.