Zoopla House Price Index Published August 2022.

In the past twelve months, house prices in the UK have increased by £19,800, which works out to be 8.3%. In the first half of the year, we have seen a strong demand from buyers as well as a good number of sales being agreed, following the same level as last year. Zoopla has also noted that the number of homes coming to the market has also increased, as in spring, the average UK estate agent had less than 12 for sale, compared to now, where it is sitting at 14.

Zoopla states that while buyer demand is slower than last summer due to the uncertainty within economics, the level is still above the five-year average.

First-time buyers now need an additional income of £12k to purchase at a 4% mortgage rate compared to the previous year. In London this has increased by nearly £35,000. Outside of the South of England, the monthly repayments at 4% would still be higher than the average rent. With rental prices increasing and the flexibility with people working from home, this has pushed an increase in these buyers coming to the market with a 3% increase compared to last year.

This could lead those first-time buyers in the South who are looking to buy, to continue renting for an additional year or so to build a higher deposit, to also bring the monthly repayments down slightly. If you are a first-time buyer and struggling with finding a mortgage which fits you, it could be worth speaking to an independent mortgage advisor to get you the best deal.

It is predicted by Zoopla in Q4 and 2023, that the sales market will be impacted by increasing mortgage rates mixed with increasing cost of living prices. Yet it could be that we will see more people looking to downsize in order to take equity and help with monthly payments.

If you would like to know more about the current market and your property, call us today on 01233 501601 or to book a valuation click here.

READ MORE: https://advantage.zpg.co.uk/wp-content/uploads/2022/08/UK-House-Price-July-22-FINAL-1.pdf

Source: Zoopla, August 2022