In the News
Recession Watch - UK House Prices Fall in October 2022
The average price of a property in the UK has seen the first monthly fall since July 2021. The Nationwide is Britain’s biggest building society and one of the largest mortgage lenders. Their latest house price data shows that average house prices in the UK were down 0.9% in October.
The average price of a property in the UK has dropped to £268,282.
Clearly tough macroeconomic conditions are starting to be felt in the property market.
Real wages are falling, consumer confidence is at a 30 year low and home loans are becoming more expensive.
1.8 million fixed-rate mortgage deals are due to end in 2023 and will need to be refinanced at a time of rising interest rates.
Nationwide points out a 1st time buyer on an average wage with a 20% deposit & 5.5% mortgage interest rate, would have to pay out around 45% of their monthly take home pay to service their mortgage debt.
A softening of property price is probably no bad thing not least for people who cannot afford to buy and who are also struggling to find rented housing at a suitable price.