The latest House Price Index has been released by the Office for National Statistics (ONS), but what does it reveal about the health of the market? Here are the three biggest takeaways.
1. House price inflation is falling month-on-month – The ONS suggests that the rate has fallen from +4.1% in the year to March, to +3.5% in the year to April.
2. Regional differences remain huge – The average house price in Northern Ireland sits at £172,000, while that in England is a staggering £306,000.
3. London losing its allure – The capital recorded the lowest annual percentage change of all English regions at +2.4%. In contrast, the North East achieved the highest annual percentage change of all English regions (+5.5%).
Conor Murphy, CEO and Founder, Smartr365 unpicks the data further: “Today's data demonstrates that market conditions remain healthy. Inflation is expected to fall throughout the year, and economists predict just two more interest rate hikes in 2023, which should encourage some calm throughout the second half of the year and give first-time buyers a greater opportunity to make their way onto the housing ladder.
“Once interest rates settle, many borrowers and new buyers will be looking to make fresh purchases. Mortgage technology can support here, especially when increased activity means that time is tight for brokers. Digital tools can streamline and automate processes, cut inefficient admin tasks, and therefore, give advisers the resource to prioritise providing their clients with quality advice, a factor that is increasingly important as buyers begin to approach with more caution.”
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