London house prices have soared since the beginning of the pandemic 

This is the latest information on house prices in the UK property market. 

The average UK house price rose by 11% in March 2022, growing as high as £282,753, according to the latest research on house prices from Halifax. The mortgage lenders claim that the average prices rose by 1.4%, with £3,860, in March 2022 – it is the most significant increase since September 2021.  Since the pandemic has started, the UK house prices have increased uninterruptedly for almost one year, according to Halifax. The average price reaches £278,123, as the market continues to challenge economic conditions. 

The UK house prices rose faster than in 2007, with the average property achieving the major annual cash gain in the last 40 years since the lender’s index started. It’s been two years since the pandemic started, real estate agents say the housing market is continuing to rise and change economic conditions, with average properties prices achieving £370/week. It’s the nine months in a row since property value increased, forcing the annual rate of price development to 10.8%, the highest number since 2007. Halifax bank mentions that the UK’s biggest performing area, with an annual house price rising by 14.6% in West England. Whales, for example, recorded a figure of 14.1% in March 2021, which was the regional top monthly spot. The average house price in Whales reached now £211,942. 

In other regions in the UK, like Northern Ireland, property prices exceeded 13%, and 11.6% in the South of England. London is the UK’s weakest performance area in March 2022. However, house prices are continuing to improve by 5.9% in the capital. There’s a story behind the house price inflation which remains untouched: strong demand and limited supply, regardless of the increased pressure on household finances. House price grows to new heights, but with the increased and dreadful financial climate settling in, we might expect to see a drop in the coming months. 

The effect of increased house prices makes it difficult for homebuyers to make their step toward buying a new house but also challenges those who move to face even greater leaps to buy a larger property. Estate agents have said that even though the prices of homes for sale continue to increase, the pandemic has still driven people living in urban areas to look at moving somewhere with more open space, a yard, such as a small town in the countryside, by the sea, or in a village. But the events in Ukraine are expected to help put the brakes on such a competitive market. Halifax’s managing director, Russel Galley, said that the war in Ukraine is a big tragedy and that it’s likely to have an impact on people’s confidence, trade, and global supply chains. 

As such, gas and oil prices were an instant consequence, which means that the UK inflation remains higher for a longer time, accumulating the pressure on stretched household profits. As time passes away, other factors are likely to add to buyer demand, with market movement to return to more normal levels, and easier house price growth to witness. 

What Will It happen to House Pries in 2022?

Experts predict that 2022 is the year when house price growth will decrease. The overall price rise of 3.5% this year might be cut to  3% by 2023. Is it still worth it to get a mortgage deal? Mortgage rates fell reliably in 2021, as lenders struggled to provide the cheapest deals to homebuyers with enormous deposits. But that changed now, as such, rates grew off. But still, the great news is that there’s still time for some attractive deals. 

Is Now a Good Time to Buy a Home?

If you’re thinking of buying a new property in 2022, there is good and bad news. The good news is that low-deposit mortgages are available, so you can find it easier to obtain a loan than ever before. But still, the bad news is that home prices are unlikely to decrease. Experts might say that prices will get more affordable, but no one really knows that prices will actually fall that much. But if you’re ready to take the risk, here are some house-buying tips you should consider. 

As a first-time homebuyer, you know how stressful and time-consuming the process is. But still, is it the right time to make the move? Have you saved enough deposits? Saving enough deposit is one of the most important things to consider before thinking of buying a home. However, the rising house prices in 2021 haven’t helped the situation. But the good news is that affordable mortgages are available, which seem to have disappeared during the pandemic. How much deposit do you need to buy a home? Well, it totally depends on the cost of the property you’re looking forward to purchasing. 

You’d need around 5% or 10% deposit for an average home in the UK, Wales, or Scotland. You can use a mortgage calculator to have a clear idea of how long it would take to save up enough cash. When applying for a mortgage, the bank will usually evaluate your financial situation before deciding whether you’re eligible or not to make the monthly payment. Generally speaking, banks will borrow a loan that consists of up to 4.5 times your annual income (plus your spouse’s income, or anyone else you’re buying with). But this is just a general assumption, you should go check your bank before deciding what to do. Some banks might limit your income by 4 times, while others might provide even 5.5 times if you meet their criteria. Mortgage criteria can vary from lender to lender, so it makes sense to speak to a professional broker to get proper advice on which a bank may offer the best deal for your situation. It can be incredibly helpful if you’re self-employed, as you might need to show more evidence to support your loan application. 

The housing market has been running on a high scale for a while, but this doesn’t mean that house costs might not become affordable. However, there’s no suggestion that it will happen, as generally, the annual property price rises across most of England, making growth in previous years look ordinary.