17 August 2022
If you are covering the UK House Price Index, please see the following comment from Charlotte Nixon, mortgage expert at Quilter:
"According to the latest UK House Price Index (HPI), despite there still being an increase in house prices between May and June 2022, they have certainly softened having now increased by 7.8% over the year to June 2022 down from 12.8%.
"This is likely a sign of things to come considering the Bank of England base rate is now at 1.75% and as inflation was reported at over 10% this morning further rate hikes are not off the cards which may put off potential buyers due to exorbitant mortgage costs.
"Other indexes such as the Halifax house price index have shown that the much-anticipated reversal of house prices has just begun to materialise with a small decline of 0.1%. According to the UK HPI the average UK house price was £286,000 in June 2022, which is £20,000 higher than this time last year. Such a huge jump in a year will put buying a first home out of reach for many first-time buyers.
"However, the market may pull back now as cheap mortgage deals are a thing of the past along with a cost-of-living crisis draining people’s funds. With energy prices soaring we may see very few people choose to move in autumn and winter. If housing stock then starts to accumulate prices will be naturally driven down by the laws of supply and demand.
"The days of never ending house price rises may be drawing to a close."
