Financial Conduct Authority No. 952718

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Spring Roundup: House Prices Continue To Rise

30 May

Mortgage News

For the tenth consecutive month in a row, house prices continued to rise again last month at a rate of 10.8%, according to the most recent Halifax Price Index. With rising interest rates and the rate of inflation increasing, it is predicted that house prices will slow later in 2022, particularly in light of a 20% drop in mortgage searches for buy-to-let mortgages. However, with that being said, the average cost of UK homes hit a record £286,079 last month, with the demand for housing still at an all-time high. 

If you’re looking to start your mortgage application and need bespoke advice on your current situation, book an appointment to speak to one of our Northamptonshire Mortgage Brokers today.

Why Are House Prices Still Increasing? 

As set out in our guidance for buying a home in 2022 last month, significant savings over the past two years has allowed buyers to put together more significant deposits, which has likely contributed to greater buying power in 2022. There does however remain an imbalance between the housing supply and housing demand. 

A lack of properties coming to the market, increased prices, and bidding wars between potential buyers result in homes being sold, and buyers paying, well over the asking price. Demand within the property market remains strong and shows little sign of easing; however, when considering the broader economic challenges and increases in the cost of living, it is expected that this demand will slow in the latter months of this year. 

On top of this, many mortgage lenders will likely start reacting to the increase in inflation and cost of living by applying a more cautious response to lending. If you’re worried about your chances of getting approved, our Mortgage Experts in Kettering can advise you on your situation. Get in touch with a member of our team today.

Decline In Mortgage Searches 

According to Twenty7Tec, new statistics have emerged, which highlight April as the first month where there have been fewer mortgage products available on the market, along with a drop of 20% for searches on fixed-priced mortgages. 

When asked about these statistics, Twenty7Tec’s Chief Executive, James Tucker, indicated that there are a number of variables that could be at play for the reduced figures. It is not quite clear whether these relate to a drop in buying confidence or in the economic outlook or whether it is linked to further upcoming changes from the Bank of England. On the other hand, it could be down to something as simple as fewer working days in April 2022. Over the next few weeks, it will become more apparent whether these figures will be maintained in the long run. 

In the meantime, if you need help identifying the best mortgage products for your circumstances, we provide bespoke advice tailored to our customers. Speak with one of our Mortgage Brokers today.

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