The biggest news on the property market front is that house prices have dropped in the biggest reduction since the UK financial crisis kicked off. Halifax bank, which regularly releases a house price index, have announced that the average house price has dropped by 2.3% compared to 0.4% in October. Halifax’s house price index is a report generated from research into and around the sale and listing prices of properties in the UK.
Since the UK economy started to slump and the cost of living crisis began, property prices have been slowly decreasing after reaching unprecedented highs over the last few years. Before the crisis, the average UK house price had reached around £292,000 however, the average price has now dropped to £285,579 according to Halifax. A drop of about £6,500. Not astronomical but still a drop and chances are they will most likely drop again as competition for property stalls. This is mainly due to people holding off purchasing while money is tight and mortgage interest rates are high.
House Prices Still High
It is important as well to note that house prices are still much higher than this time last year and even higher than they were before the beginning of the COVID-19 pandemic. After the pandemic, the price of houses went up as people confined to their properties started to consider upsizing, downsizing and generally getting a change of scenery. Naturally there were a shortage of properties as there generally always is in the UK and an abundance of people looking to move, so this enabled sellers to increase their asking price and encouraged buyers to have bidding wars against each other.
Since the pandemic began, the average price of a property in the UK has increased by over £40K and the average price of a property has increased by £12K in the last year alone. But, this new data coming out of Halifax is a sign that we will probably see a significant drop in the next year to 18 months. Good news for people hoping to purchase a cheaper property but not so great for those looking to sell.
If You Are Looking To Buy Or Sell, Speak With a Property Professional
If you are either considering buying in the new year or selling, or both, and you are interested in or concerned about the drop in property prices in the UK over the last few months, the best place to start is always by talking to a property professional. Estate agents and mortgage advisors are experts on the property market and keep up to date with the latest property and mortgage trends in the area you are looking to purchase.
By speaking to a mortgage advisor, you can understand what your mortgage options are, what property price you can afford, and you can also discuss any concerns you might have if the price of your property goes down such as having negative equity in your home. An estate agent will be able to guide you on how to market your property if you are selling, they can get you an accurate and well research value for your property and if you are buying, they will be able to find your ideal property in your budget.
Give our team a call today to discuss any questions or concerns you have. We are here to help.