After two years of extreme market activity, you’d be forgiven for thinking the tide is ready to turn. But despite burgeoning constraints on household finances, the buying frenzy continues, with properties still selling at almost record speeds nationwide.*
But what’s driving this situation? The leading cause appears to be a general lack of supply. From delays brought about by the pandemic to a chronic shortage of new homes across the UK, the supply-demand ratio is proving difficult to balance.
Low-interest rates and rising inflation also mean that buyers hope to reduce their potential mortgage debt. This combination of factors has contributed to UK house prices increasing by 9.8% between March 2021 and 2022 – adding £24,000 to the average value.**
However, with society in the grip of the cost-of-living crisis and the government announcing measures to tackle inflation, the long-term picture is uncertain. Currently, the market is strong – and will probably remain so for some months.
Do you know how much your home is worth right now? If you’re thinking of selling, contact us to book a valuation with us today.
*Data based on a recent market analysis by Home.co.uk.
**UK House Price Index: March 2022.
