Are UK House Prices Stabilising?
According to a recent survey by Nationwide, UK house prices increased by 0.5% in April 2023, ending a seven-month period of consecutive declines.
This may be seen by some as a positive sign that the property market is starting to stabilize after the turbulence of recent months.
However, it is important to note that the current average house price is still 2.7% lower than it was in April 2022, so there’s still a little way to go before the market fully recovers.
As we move towards the summer months – which traditionally tend to be a busier time for home buyers – it is hoped that the property market will continue to improve. However, there are still challenges that need to be addressed in order for the market to fully recover.
One of the biggest challenges facing the property market is the impact of inflation and interest rates. Higher inflation means that the cost of living is increasing, while higher interest rates make it more expensive for people to borrow money. This can make it harder for people to afford to buy a home, particularly if they are on a low income or have other financial commitments.
Nevertheless, the recent uptick in prices may indicate that buyers and sellers are becoming more optimistic about the future. Although inflation and interest rates are currently still high, mortgage interest rates have been slowly creeping downward, and the government has ambitious plans to cut inflation in half by the end of the year. Which is reassuring for those who have been holding their breath to see how things pan out.
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Helen Peel – 4th May 2023