UK house prices peak - is it the right time to sell and buy property?
Planning to sell your property, buy a new property or both? Given rising energy costs and the global calamities of the present, there will be no perfect moment soon. So if you are ready, you shouldn't be put off moving.
But first, you’ll want to explore the current property market! Let’s look at the latest house prices, and our agents of properties for sale in Sittingbourne will weigh in with expert opinions.
UK house prices continue to climb
Halifax recently reported that house prices in the UK have increased over the last ten months in a row. In April, they increased by 1.1% (or £3,078) to reach another average all-time high of £286,079.
Detached and semi-detached houses have risen by 12% in the last 12 months, while flats have risen by 7%, indicating that demand is still focused on larger family homes as it has been for the last couple of years with the “race for more space”.
Why have house prices continued to grow?
Bustling property market activity was not the only surprise effect of the pandemic’s peak, which led to strong house price growth in 2020. The introduction of a stamp cut on 8 July 2020, which offered homebuyers a saving of up to £15,000 in tax, was also a major contributor.
By mid-2021, ultra-low mortgage rates entered the equation, which prompted a mini-boom in the market. And as supply levels were lower than demand from homebuyers, house prices continued to rise.
Zoom forward to the start of this year, and interest from homebuyers remains significant, with prices still rising in May.
Will prices drop soon?
No one can predict with certainty what house prices will do next. But rapidly rising inflation tends to push interest rates up, with a base interest rate hike planned by the Bank of England later this year. As a result, the housing market should cool over the next couple of years.
This, coupled with rising living costs, can lead to slower house price growth, with new Halifax data showing house prices already starting to slow month on month.
Should you sell your property?
Traditionally, spring is notoriously busy with homeowners looking to move before summer, which can help you sell your property faster. You could even achieve a higher sales price if buyers try to outbid each other.
Those planning on selling a property in more rural locations or within reach of the sea have a big chance of making some serious profit on their sale. Even more, if it’s a family home, such as 3 or 4 bedroom property for sale in Sittingbourne.
Is now a good time to buy a property?
Likewise, Spring is a great time of year to buy a property as there are more homes on the market to choose from.
As for mortgage rates, they have risen faster in recent months due to economic factors but are still in line with historical averages. When you choose your new mortgage, it’s worth considering a fixed-rate plan which will save you from unexpected future increases in monthly payments.
If you are a first-time buyer, you can check the Government’s website for active ownership schemes. For example, the mortgage guarantee scheme requires a low 5% deposit with participating mortgage brokers.
Want to know how much your property is worth? Book your property valuation with our agents of properties for sale in Sittingbourne.
For professional advice on buying, selling, renting or investing in property in or around Sittingbourne, please contact us today.
Get in touch
- LambornHill, 19-21 West Street, Sittingbourne, Kent, ME10 1AJ
- Do you need to sell your home?Book a valuation with one of our team.
