Welcome to our analysis of the UK housing market for March 2023. The UK housing market has remained resilient over the past year, despite the ongoing challenges presented by the COVID-19 pandemic. In this post, we will highlight some of the positive trends that we are seeing in the market.
Steady Growth in House Prices
The UK housing market has experienced steady growth in house prices over the past year, with the average UK house price in January 2023 standing at £275,000, up from £230,000 a year ago. This represents an increase of 19.6% over the past year.
While the rate of growth has slowed down in recent months, this can be seen as a positive sign. It suggests that the market is beginning to stabilize and that house prices are moving towards more sustainable levels.
Increased Supply of Properties
One of the main challenges facing the UK housing market over the past year has been the chronic shortage of properties available for sale. This has put upward pressure on prices, as demand has outstripped supply.
However, we are now seeing signs that the supply-demand balance is starting to shift. According to data from Rightmove, the number of properties listed for sale in January 2023 was up 15% compared to a year ago. This increase in supply is likely to help to stabilize house prices, as it will give buyers more options to choose from.
Low Mortgage Rates
Another positive trend in the UK housing market is the low mortgage rates that are currently available. Mortgage rates remain low by historical standards, and this is helping to support demand in the market. According to data from Moneyfacts, the average two-year fixed-rate mortgage in January 2023 was 1.85%, down from 2.23% a year ago.
Low mortgage rates are particularly beneficial for first-time buyers, who may be struggling to get onto the property ladder. With mortgage rates at such low levels, it is easier for buyers to secure a mortgage and make their first step onto the property ladder.
In conclusion, the UK housing market for March 2023 is showing positive signs of growth and stability. House prices have continued to increase, but at a more sustainable rate, and we are seeing an increase in the supply of properties available for sale. Low mortgage rates are also helping to support demand in the market. Overall, the UK housing market remains an attractive option for investors and buyers alike, and we are optimistic about its future prospects.