UK Housing Market Trends in 2023: An Update
In the 12 months leading up to July 2023, there's been a subtle 0.6% increase in UK house prices in July. This is a bit slower than the 1.9% growth rate we noticed in June 2023. Want to see the detailed figures? Here’s the official report from the ONS
Last July, the average UK house price stood at a respectable £290k. That's a £2,000 jump from a year earlier, but interestingly, it's £2,000 less than the all-time high in November 2022, as the Office for National Statistics highlighted.
Turning our eyes to London, the property market saw a 0.8% dip in July. But don't let that fool you - London continues to be the priciest place in the UK, boasting an average property price of a whopping £534k.
What's the reason behind this recent ebb in London's property prices?
Many point fingers at skyrocketing mortgage rates and a wavering buyer sentiment. It's evident from the latest trends that surging interest rates in the past year have put a damper on house prices. These mortgage rates, the highest in over a decade, are posing challenges for homeowners especially with inflation on the rise and stagnant household incomes.
But it's not all gloom and doom. Some fresh stats hint at a market rebound. Rightmove's latest analysis (see their report here) showcases the average five-year fixed mortgage rate settling at 5.67%, marking its seventh consecutive week of decline since
its peak of 6.11% in July.
A cherry on top? As we stepped into September, the property market seemed to be buzzing. A surge of 12% in new properties was noted in the first week, outperforming the average weekly listings of August.
Also, the recent inflation rate of 6.7%, better than many predictions, might bring some calm to market jitters. Find out more about the inflation data here.
Property investmenting is about investing i the right development, in the right location at the right time. Please feel free to browse our developments here
or you can call us on 0208 144 6222 or WhatsApp if you prefer. Our chat facility at the bottom right is always a good option to get answers straight away.