Financial Conduct Authority No. 952718

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House Prices Up 21%: Buying A Home In 2022

16 Apr

Mortgage News

A recent news report from Nationwide has shown that the average house price is now an astonishing 21% higher than the prices in early 2020. In March 2022, the average UK home rose in value by a whopping £5,000. This highlights the current unsustainability in affordability of living, as the average worker’s monthly salary is only around half this, at approximately £2,500.

With rising costs of living and increasing costs of borrowing, buyers will be forced to reconsider their expenditure and more importantly, whether now is the right time to buy. However, whether you’re a First Time Buyer or looking to expand your property portfolio, you shouldn’t let this put you off buying the house of your dreams.

At CG The Mortgage Experts, we’re here to help take the guesswork out of your investments and help you choose the best product for your circumstances. If you need advice, book an appointment to speak to one of our Mortgage Brokers in Northamptonshire today.

Why Have Prices Increased?

The average house property price has now reached a record number at £282,753, according to Halifax’s latest house price index. Nationwide’s Chief Economist, Robert Gardner, also highlights that the significant savings during the pandemic are likely to have helped buyers raise a more significant deposit, which they are now looking to spend on a house. This has created an increased demand for housing, with limited stock on the market causing property prices to soar. 

Gardner also considers that the continued demand for housing may be attributed to labour market conditions, which continue to be strong. Assuming that the market conditions maintain this strength, the Bank of England is likely to increase interest rates further, which will affect mortgage repayments for buyers. 

What Does This Mean For Buyers In 2022? 

With more sellers expected to come to the market during the spring months, for the remaining portion of 2022, it is expected that this will take the pressure off of the current housing demand and likely cool off the rising house prices. If you’re considering buying a house, we recommend considering longer-term options to curve the predicted increase in the Bank of England’s interest rates, with many of our clients currently looking at five-year mortgages over two-year mortgages.

Need help identifying the best mortgage products for your circumstances? For tailored 100% free mortgage advice on your current financial situation, and to discuss which products are available to you across a ‘whole of market’ view, get in touch with our mortgage specialists today.

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