The BBC recently reported that the average UK house price hit a fresh record in April but that growth is set to slow this year as inflation and interest rates rise, writes Nick Aston of Ruddington’s Benwell Daykin Estate & Letting Agents.
The Halifax said house prices rose 1.1% in April compared with March. While it said prices had grown for 10 months in a row – the longest run since 2016 – it said “the headwinds facing the wider economy cannot be ignored.” Hikes in the cost of living and higher interest rates will squeeze household budgets, the mortgage lender predicted. The Halifax, which is part of Lloyds Banking Group, said that house prices had risen by 10.8% in a year, taking the average value to £286,079.
Last Thursday (5th May 2022), the Bank of England warned of an economic downturn as it raised interest rates to the highest level in 13 years. Home owners on fixed-rate mortgages have been cushioned from rate rises so far, the Halifax said. But Russell Galley, its managing director, said the house price to income ratio was already at its highest ever level: “With interest rates on the rise and inflation further squeezing household budgets, it remains likely that the rate of house price growth will slow by the end of this year” he added.
House prices are being driven up because there are more people looking to buy than there are properties for sale, it says. The biggest demand is for larger, family homes, rather than smaller properties such as flats.
Over the past year, prices for detached and semi-detached properties have risen by over 12%, compared to just 7.1% for flats, according to the Halifax figures.
Demand in Ruddington
Nick reveals: “At Benwell Daykin Estate Agents we are still seeing far greater demand than available properties in Ruddington and the surrounding areas. Most family homes we list are attracting multiple offers and achieving sales very quickly and at the upper levels of the price guide. We still expect to see steady price growth this year as demand still significantly outstrips supply meaning that it is an ideal time to sell your property.”
If you would like to book a free, no obligation, valuation of your property – to see how much it is now worth – then you can contact Nick or one of the team at Benwell Daykin on 0115 990 2007or by emailing info@benwelldaykin.co.uk.
