Estate agents Fine and Country have an optimistic outlook for the UK housing market.
Overview: The UK property market looks promising! Inflation is going down, which could mean better mortgage deals are on the horizon. Though there might be a slight dip in house prices soon, it won’t be as big as previously thought.
Current Trends:
- Buyer Activity: Even with economic ups and downs, people are still buying. There were 85,870 properties sold in June, a 6% rise from May. While it’s a 15% decrease from the previous year, it shows the market is still strong.
- Mortgages: Good news! In June, mortgage lending went up to £20bn. Approvals are the highest since last October, suggesting that people are keen to borrow and buy.
- Pricing: The average selling price of a house has dipped a tiny bit (0.2%) this month. It seems sellers are being more realistic about how much their homes are worth. In fact, 6.5% of homes on the market have had their prices reduced by 5% or more.
- No Crash in Sight: Even with some challenges, a massive 70% of listed properties have been sold in 2023. So, fears of a housing market crash seem unfounded.
- Buyer & Seller Confidence: Despite some uncertainty, people are optimistic! Two-thirds of sellers believe they’ll find a buyer within three months, and 74% of buyers think they’ll have their own place in the same time.
- Location Preferences: People are keen on smaller, reasonably-priced homes close to where they work. But, bigger homes have seen a dip in sales recently, mostly because of rising mortgage costs.
- Green Homes: Energy efficiency is in! Homes with better energy ratings are holding their value better, and more buyers are interested in eco-friendly homes.
Prime Property Market:
- The average price of a high-end home is £1,299,767. It’s down a tiny 0.1% from last month but up a whopping 8.2% from last year.
- Cash is king for these buyers, and they’re not bothered by changing mortgage rates.
- The variety of prime properties has gone up by 45% since the pandemic started.
In a Nutshell: The UK property market is resilient and shows strong signs for the future, especially for sensibly priced homes and those that are energy efficient!