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How are house prices in the current market situation

UK house prices have started to fall in recent months as mortgage rates and rising inflation have reduced purchasing power.

In 2021 and 2022, house prices increased significantly across almost all of England. The growth rate was higher than when recovering from the global financial crisis that occurred in 2008.

Both Nationwide and Halifax have seen UK house prices fall over the last five months

According to Nationwide, house prices in England fell by 1.1% on an annualized basis in February this year, with the latest average house price of £257,407.00 which is below the £258,297.00 average house price in January this year.

A fall in house prices could mean for people looking to buy their first property in England that buying becomes more affordable and it will be easier for them to become the owner of their first property, provided they get a mortgage.

On the other hand, a reduction in house prices may discourage sellers from listing properties for sale, some of them will want to wait this period.

In the so-called In the mini-budget announced by the Treasury and in the financial markets, Bank of England interest rates were projected to rise above 6% in 2023. However, current expectations are that the interest rate peak should not exceed 5%.

Thanks to the positive signals coming from the economy regarding inflation in the UK, it can be assumed that inflation should not increase any more.