The latest Nationwide property index for July 2022 has shown that the heat is still on in the UK residential property market with house prices up 11% pa (July) from 10.7%pa in June. This is despite fears for economic slowdown, recession, higher interest rates and recession. This is the 12th month in a row that the rate of house prices rises has increased even further.
That said, many surveyors report that there is a slowdown in activity so prices will eventually fall back. Most people will be surprised that they have not fallen back already.
Lack of housing supply and a strong jobs, employment and wage rises market is keeping the property market warm.
Many people are buying sooner rather than later to lock into lower mortgage rates and with 10% plus pay rises common, people can technically afford to pay more.
If recession comes, it is inevitable that redundancies will come and property prices will fall back.
We have not forgotten negative equity of the early 1990s alongside the property price bubble bursting in 2008. It is coming, so be prepared to hold as eventually the property market will bubble back up again after prices falls probably in 2023.