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The UK Housing Market



The UK Housing Market

The Uk housing market


Finacial News

The UK Housing Market

Another weekend is here already, it feels like the days are getting faster and faster with each passing moment. Apparently, this phenomenon has something to do with the aging process. As we get older, we have fewer new experiences as the world around us becomes more familiar and we become less sensitive to our experiences. Children on the other hand lay down more mental images per unit of time so they tend to remember events more vividly than we do, so buckle up, the days ahead will only get faster!

Back on planet UK, the real estate market has been hurtling towards the stars at breakneck speed since Brexit. Official figures out this week show that prices rose 12.4% over the year to April 2022, with average sold prices reaching dizzying heights of £281,000. There are regional disparities, average prices in England increased to £299,000 (11.9%), in Wales to £212,000 (16.2%), and in Scotland to £188,000 (16.2%).

London witnessed a year-on-year growth of 7.9%, the slowest of any region but it still has the most expensive properties in the country.

What’s driving the Market?

Cheap credit has been a major factor for one, interest rates have been at historic lows for a protracted period but they have finally started to rise recently. The bank of England has raised the base rate five consecutive times with further increases expected in the future.

Second, the demand for homes far outstrips the supply. The UK simply isn’t building enough homes in places where people want to live. Restrictive planning laws bear the brunt of the blame here, the government wants to introduce new laws to make it easier to build new homes but this initiative may be dead on arrival.

What goes up must come down?

Not so much, it seems with this market, some experts are predicting a cooling in the price rises due to rising interest rates and a squeeze in the cost of living but not many are predicting a market crash. The chronic undersupply will simply take too long to meet, some estimates suggest that five million new homes would need to be built just to meet the current demand.

What does all this mean for you?

Here at PariVest, we adopt a long-term outlook, which means market cycles do not affect our overall strategy. We will continue to buy yield to ensure we deliver our promise to you.

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