UK house prices have been hot for some time, but are we seeing signs that they may be finally starting to cool?
Last week, the Office for National Statistics published its latest House Price Index, showing that average UK house prices have grown by 6.3% in the year to January 2023. The good news for those looking to buy is that the rate of house price inflation has actually been falling since November.
While the sharp fall in house prices seen in September can be tied to the mini-budget and the subsequent turmoil in the financial markets, the steadier drops from October onwards are linked to the weakened economy and ongoing cost-of-living crisis.
Conor Murphy, CEO and Founder, Smartr365 said that the figures were good news for those on the hunt for their first home – “Aspiring buyers will be pleased to see some of the heat coming out of the property market.UK homes have always been hot property for both domestic and international buyers, but even more so in the last three years due to the generous stamp duty tax break.”
Murphy also suggested that there could be more good news to come – “Many expect the market to continue to cool off throughout the year, with estimates typically ranging between corrections of 8% (Halifax) and 5% (Nationwide). With prices having risen by 6.3% over the year to January, this will be welcome relief for those looking to take their first step onto the property ladder especially.”
“Notwithstanding this, analysis of Land Registry data suggests that the largest uplift in transactions typically occurs in spring, creating an annual market ‘bounce’. Firms must invest in back-end processes now to maximise the imminent uptick in demand. Streamlining admin, lead flow, and product sourcing through the use of mortgage tech tools will be essential for anyone looking to provide consumers with the best possible service during this busy period.”
So, with the annual busy period just on the horizon, it’s time to consider if you’re prepared to take advantage. Arm yourself with the quicke stand most powerful tools on the market to ensure you can help as many clients as possible to make their home buying dreams a reality.
We have partnered and integrated with some of the industry’s biggest players to eliminate paperwork, reduce risk, and save time, including Legal & General, Halifax, and Barclays. Our end-to-end platform combines the industry’s leading acquisition, application, referral, and security tools in one user-friendly package.
We are trusted by just under 4,000 UK brokers – to find out why, book your free Smartr365 demo today.