Property prices in the UK have been changing significantly after the pandemic. Experts in the property market predict a price drop as the mortgage rates keep rising. According to the Land Registry, house prices have gone up by 14% year on year in August 2022. However, the new figure by the land registry does not reflect what is on the ground.
The huge jump in property prices reflects a distorted property market in the last summer after the end of the Stamp Duty Holiday. In June 2021, most buyers rushed to benefit from the tax holiday, saving up to £15,000, and this resulted in a lull in July and August of 2022.
Property prices dropping in the UK
The reality is that house prices in the UK have decreased for months. According to Rightmove and Halifax data, property prices have remained constant from month to month. Most experts believe that property prices will be even lower amid the rising cost of living and increasing mortgage rates in the UK. You can also consult London property solicitors in this regard.
In the last couple of years, house prices in the UK have been rising considerably. The stamp duty holiday and the pandemic result in a more volatile housing market in the UK. The UK House Price Index that the Land Registry issues is one of the most reliable measures and signals of what is happening in the property market.
The Housing index is obtained using the actual or real property sales and not asking prices, which makes it more reliable. The index works on two monthly bases, with the most recent data being for August 2022.
According to the Land Registry, the average property price in the UK has risen by 13.6% year on year in August, reaching £295,903.
How many houses are selling in the UK
Last year, 2021, most new homebuyers rushed to take advantage of the stamp duty holiday. This caused a property market boom, resulting in sales spikes around the end of June. The number of house sales is almost closer to the pre-pandemic levels in the UK. According to recent data from the HMRC, in September 2022, at least 104,000 transactions went through.
In the first half of 2022, there has been an imbalance in the supply and demand for property. A few properties are coming on the market. Most real estate agents are reporting the lowest property sales. There are signs that the demand for property from homebuyers has started dropping.
According to Rightmove, properties sold at an average of 37 days in September and back from 32 days in May. This means that it now takes longer to sell property than it was in the pre-pandemic.
Final Thoughts
Are you looking forward to buying property in the UK? Now is the right time to sell or buy a new home, as property prices have been dropping. Reach out to a real estate agent to help you get the best price for the property and a conveyancer to help with the paperwork.