Yesterday the UK government published a research briefing paper entitled “Housing Market: Key Economic Indicators”
A full one page long! it tells us that house prices increased by 10.3% in the period between November 2021 and November 2022. Between October and November 2022, the seasonally adjusted prices show an increase of just 0.1%
We are told that house prices grew at different rates across the UK during 2022, with the North-West, East and West Midlands, seeing the highest growth; Scotland, London and the Southeast with the least growth.
Mortgage approvals during 2022 were also 30% below the same period in 2021.
The general consensus is that house prices will fall during 2023. Lloyds Bank CEO Charlie Nunn said in an interview a few days ago, that he expects prices to fall up to 10% this year, brought on by the higher mortgage rates and general cost of living.
Liz Truss’ calamitous mini-budget last September, triggered the banks to withdraw over 40% of all mortgage products, due to the fear that interest rates would peak at unacceptable levels. The Bank of England have suggested in a survey of lending institutes, that they are expecting a sudden rise in customers who will default on their monthly payments – not only in mortgages but also on personal loans and credit card payments.
Not only is the annual headline rate of inflation at 10.5%, with food and fuel costs at an all-time high, but if you are looking to refinance your mortgage this year, it has been suggested the average mortgage payer will see an additional £3,000 a year costs in interest rates.