What’s next for the London property market?  

House prices increased 9.5% year over year in September, according to the Land Registry, although there are definite indications that the market is starting to cool. The most recent official data indicates that prices did not change between August and September, while more recent figures from Rightmove, Halifax, and Nationwide show little monthly drops in home values. In light of the rising cost of living and skyrocketing mortgage rates, experts including Notting Hill estate agents, have predicted what the future will do for the property market.

How have real estate costs changed?

In the past two years, there has been a significant increase in home values, with the pandemic and the stamp duty holiday contributing to the market’s increased volatility. The Land Registry’s UK House Price Index, which is based on actual transactions rather than listing prices, is the most accurate indicator of how house prices are faring. The most recent data are for September since it operates with a two-month lag. According to the Land Registry, the average cost of a home in the UK increased by 9.5% on a year-over-year basis in September to reach £294,559. Know about solicitors Stratford and more services similar to it if you really need the best services in 2023.

What other housing price indices are there?

There are numerous additional home price indices. The most recent data is provided by Rightmove, although it is based on asking prices established by sellers rather than actual sales. Additionally, Halifax and Nationwide release monthly data based on mortgage lending.

What number of houses are being sold?

Last year, the real estate market exploded as purchasers flocked to take advantage of the temporary reduction in stamp duty. When deadlines came up in June (when tax savings of up to £15,000 were possible) and September (when savings of £2,500 were possible), sales skyrocketed. The number of monthly purchases is now considerably closer to pre-pandemic levels. According to HMRC’s most recent figures, this October saw a little over 108,000 transactions.

Has there been a slowdown in the estate market?

There was an imbalance between supply and demand for the first half of 2022, with too few houses entering the market. This is still present now. Propertymark, a trade association for estate agents, claimed that in September, its members had an average of 30 properties for sale per branch, down from an average of 51 before the epidemic. However, there are indications that consumer demand may be beginning to decline. According to Rightmove, it took an average of 40 days to sell a property in October, up from 32 days in May.

What will happen to home prices for the rest of 2022 and into the future?

The cost of the living problem and rising mortgage rates are likely to have an impact on the number of homes sold in the remaining months of the year, according to experts, who also believe that house price increases will halt. The situation is more complicated in the long run. The government’s mini-budget last month caused economic uncertainty, which led analysts to expect a relatively flat price rise in 2023. Now, they predict price declines. According to Knight Frank, an estate agency, prices will fall by 5% in 2023 and by the same amount in 2024. By the middle of 2024, housing prices would decline by a total of 12%, according to Capital Economics analysts.

Decent mortgage deal

Lenders pulling out of hundreds of projects and an increase in mortgage rates following September’s mini-budget are largely to blame for the current level of uncertainty surrounding the real estate market. Due to this, even the lowest mortgage rates increased to above 5% from below 1% a year earlier. With the Bank of England’s recent rise in the base rate to 3%, more uncertainty might be on the horizon. The estate market has seen a lot of changes over the past year, with lenders pulling out of hundreds of projects and an increase in mortgage rates following September’s mini-budget. These two factors have largely contributed to the current level of uncertainty surrounding the market. Due to this, even the lowest mortgage rates increased to above 5% from below 1% a year earlier. With the Bank of England’s recent rise in the base rate to 3%, more uncertainty might be on the horizon.

Can you find a decent mortgage deal

Lenders pulling out of hundreds of projects and an increase in mortgage rates following September’s mini-budget are largely to blame for the current level of uncertainty surrounding the real estate market. Due to this, even the lowest mortgage rates increased to above 5% from below 1% a year earlier. With the Bank of England’s recent rise in the base rate to 3%, more uncertainty might be on the horizon. Even during these uncertainties, you can still find the best deal for you if you can work with property experts.