According to Zoopla, the average property price grew by only 0.1% in May 2022, the lowest monthly rise since December 2019.
Their House Price Index revealed that the demand for properties remains strong at 40% above the five-year average, but that demand is beginning to decline weekly as the market returns to more ‘normal’ conditions.
Despite the fall in house price growth, the property portal provider also reported that buyers are still experiencing increased mortgage costs. Buyers are facing average rates of 3.37% for a five-year fixed-rate loan now, compared to 2.64% in December, on a £250,000 loan, with a 25% deposit – increasing the annual cost of a new mortgage by more than £870.
Gráinne Gilmore, Head of Research at Zoopla, says:
“Buyer demand is still strong in the housing market, but signals are emerging that the impetus may be easing, so those who want to make a move should investigate their options sooner rather than later.
“In addition, mortgage rates are likely to continue to climb, so locking into a rate shortly could save hundreds over the longer-term.
“There are many factors supporting the price growth seen since the start of the pandemic, not least the continued imbalance between demand and supply, but the increasing cost of living, increasing mortgage rates for buyers and cloudier economic outlook will act as a brake on house price growth through the rest of the year.”
If you’re looking to buy a new home or remortgage, it’s important to consider your financial position and weigh up your options.
At Cornerstone Finance, our team will get to know you and your requirements and help you find the right finance solution.
To discuss how we may be able to support you, please give us a call on 02921 660 550 or leave a message, and we’ll be in touch.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT. THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME.
At Cornerstone, we aim to ensure that the information here is accurate at the time of publishing. However, the finance market moves fast, and some information may now be out of date. Cornerstone Finance Group accepts no responsibility or liability for any decisions you make based on the information provided in this article.