The average home is now worth £256,600, which indicates a rise of £19,700 year-on-year.
Despite the cost of living currently gripping the UK, the housing market continues to demonstrate considerable resilience and is holding record-setting performance. Predictions do suggest a slowdown to possibly ripple through in 2023, as those effects of the financial crisis begin to take hold.
The housing market cannot be immune from higher mortgage rates which we are starting to see increase.
One thing is for sure though, as we enter August there is no sign of a drop off in buyer interest or clients applying for valuations and viewings. Demand for homes has slowed over 2022, but remains 25% above average over the last five years and remains on a par with this time last year.
A stronger than expected desire for households to move means that overall, housing sales are expected to reach 1.3m – 100,000 more than was originally forecast at the beginning of the year.
This also means the pace of house price growth is slowing less quickly than expected and by the end of the year, prices are expected to have risen 5% meaning the average value of a home will reach nearly £260,000 by December (average currently £256,000).