House Price Index 2023
The House Price Index was released last week, here is a summary from our CEO Carl Howard.
'While a fall in house prices reflects current market uncertainty, this slight weakening paints a far rosier picture than the fearful predictions offered at the end of last year.
“With the dust — and mortgage rates — relatively settled after the tremors of the mini budget, we are seeing morale slowly returning and more committed buyers and sellers. The latest data on mortgage approvals is also positive, with February figures showing the first increase since last August.
“For those looking to get on the property ladder, consecutive monthly declines in prices could help to bolster demand by chivvying first-time buyers into action before the market rights itself again. Seller flexibility is also key, with more prepared to accept below-asking price offers to hurry their sale along.
“However there are still some large clouds overhead. This month’s surprise increase in inflation coupled with an eleventh consecutive rise in interest rates will make it tough to keep a lid on the cost of borrowing. Meanwhile, rocketing rent prices, fuelled by a lack of supply, is making it even more challenging for renters trying to scrape together a deposit.
“New regulations are also deterring prospective landlords and forcing current ones to sell up, with Zoopla data showing the number of rental properties has dropped by a third since autumn 2021.
“While sentiment is improving, many remain cautious. The next six months will determine whether or not full confidence is restored to the housing market.'
If you are looking to move, give your local branch a call. Our local advisers will be able to update you on the current market in your area and help you make your next move at the right time.
