House prices in the UK are set to rise by an average of £14,000 over the remainder of 2022, according to new industry analysis.
The increase of 5% would come despite the turbulent economic conditions, with the housing market battling an onslaught of soaring interest rates and a cost of living crisis, both of which will undoubtedly take their toll on buyers’ pockets.
Yet, the research, conducted by agency Benham and Reeves, suggests that the average house price in the UK is set to keep rising. They estimate that this will add a further £14,320 to the average property value, bringing it up to £300,717.
Unsurprisingly, the biggest price increase will be seen in London with a boost of £26,896. The smallest end of year price increases are expected to be seen in the North East (£7,896), Northern Ireland (£8,453), and Scotland (£9,612).
“We keep waiting for house prices to plateau, but it’s just not happening,” said Director of Benham and Reeves, Marc von Grundherr.
“The pandemic-inspired boom in demand and value has supercharged the housing market to such an extent that it seems even a cost of living crisis and soaring interest rates can’t stop it in its tracks, so much so that house prices are likely to keep on climbing as the year plays out.
As for if and when prices will finally fall – it’s hard to predict. But if this coming winter is going to be as tough as most are suggesting it will be, we might find that moving home is pushed to the very bottom of most people’s to-do lists and property values might, therefore, start to decline.”
This comes as mortgage approvals increased slightly in July, according to data released by the Bank of England on Tuesday. The month 2022 saw 63,770 mortgage approvals, 586 higher than June’s figure of 63,184, in what was the latest showing of the housing market’s resilience amidst the turbulent economic environment.
With house prices retaining steady growth in June and transactions soaring in July, there is a strong chance of the market maintaining some degree of momentum.
Indeed, it is that impenetrable momentum that has seen conveyancers’ workloads rocket by 34% over the previous three years.
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