24 May 2023
If you are covering the UK house price index, please see the following comment from Karen Noye, mortgage expert at Quilter:
"Government house price data today shows that house prices are once again depreciating. On a non-seasonally adjusted basis, the average UK house price has fallen for the fourth consecutive month, decreasing by 1.2% in March 2023, following a decrease of 0.1% in February 2023. On a seasonally adjusted basis house prices decreased by 0.9% in March 2023.
"This was not the news many homeowners, particularly those with plans to sell in the short term, will have been wanting to see. That said, the average house price in the UK increased by 4.1% in the 12 months to March 2023 so most owners will have seen their asset increase in value regardless.
"The spring and summer months typically bring more demand to the housing market and as such prices become more buoyant. Homeowners will be hoping that today’s lower inflation figure may spell the start of the end of the cost-of-living crisis, which will also help keep prices steady at the very least.
"The advent of new products like the 100% mortgage will also play their part in keeping more first-time buyers in the market. First time buyers have been priced out as of recent, suffering with the dual problem of having to raise a large enough deposit and eye-watering interest rates. Now, with this new mortgage product, at least one of these problems is dealt with.
"With the economic path now looking a little more predictable house prices may remain stagnant, dropping marginally over the next few months before regaining momentum when the worst of the cost-of-living crisis is behind us."
