In April 2022, the average UK house price hit a record high even after the property market started to stabilise, as more properties are now coming into the market.
Since the pandemic, buyer demand outweighed available properties, significantly increasing property prices. Although the property market is showing signs of stabilising due to more properties being marketed for sale, property prices continue to rise.
According to Zoopla, the average cost of a home in the UK is now over £250,000 at £250,200, hitting a new record, with Leicester seeing the average property sold for a record high of £272,437.
The cost of living and continuing rising costs are starting to impact buyers and put more pressure on their finances, fuelling the slowdown in the property market.
With more properties available on the market, buyers have more choice and a stronger position to negotiate the asking price, increasing the time it takes to sell a property.
However, industry analysts estimate that property prices will continue to rise for the foreseeable future.
UK house prices have risen by 8.4% during the year ending in April 2022, slightly lower than the 9% UK average recorded in March 2022. Leicester continues to show strong signs for the same period with an increase of over 6%.
Although the market is seeing more properties for sale, demand outweighs supply. However, with more choice for buyers, the average time to sell a property is increasing. For instance, a three-bedroom property is taking on average 18 days to sell, compared to 16 days in March 2022.
Some areas in the UK have also seen slight price reductions due to an increased choice of available properties.
The property market in Leicester remains strong, with some properties sold over the asking price and continuing limited stock in key areas.
Overall, the property market is expected to slow down over the next few months, as buyers will need to look at their finances due to the increased cost of living and rising interest rates. This coupled with more properties available in the market, giving buyers more choice, will fuel a slow down in the market. However, according to industry analysts, prices are still expected to rise.
For now, the good news for buyers is that there is more choice to choose from.