Property Prices August 3, 2022
     

Will House Prices Keep Rising?

It is no great secret that house prices have risen considerably over the last couple of years. Housing supply has greatly outweighed demand, while overall inflation continues to rise alongside this. In fact, statistics show that the average price of a home in the UK is now almost £47,000 more than in March 2020, while average monthly rents are sitting at £920 excluding London (Dataloft, UK HPI).

But, are these price increases likely to continue, or are we beginning to see things starting to level out again?

The Guild of Property Professionals predicts that any change will be slow, but figures have shown that market activity levels have already begun to settle to fit more in line with pre-Covid averages, suggesting that we are seeing the beginning of a return to normal. The more the cost of purchasing or renting a new property increases, the less affordable the investment, which could act as a ceiling for much further growth. However, until there are more properties listed for sale, demand will likely remain at a peak of sorts, meaning the current state of the housing market likely isn’t set to change very dramatically any time soon.