Will house prices drop?

29 Jul, 2022
Will house prices drop?

We have definitely noticed the market has begun to slow. A quick search of some of the properties local to the Advantage FS office would show many houses having recent reductions in asking price. This is in stark contrast to what we have been experiencing over the last year or so, I recall speaking to a client in March who had 35 viewings on his property over the course of a weekend. We have also noticed offers consistently being made over the asking price in many cases prompting high levels of gazumping.

This is of course just the humble experience of this interested broker. But. As Bob Dylan sang, ‘the times, they are-a changing’, could we be on the verge of house prices slowing or even reducing?

The CEO of Lloyds Banking Group, Charlie Nunn, said on Wednesday that  “Lloyds now expects house prices to grow just 1.8% this year, and fall 1.4% next year”.

Demand may drop as the cost of living soars and many people’s home moving plans are put on hold. Whilst rates remain high compared to last year it seems not unreasonable that something’s got to give, it may just be house prices.

Tom Collier Profile Image
Tom Collier - Advising Director
DipFA CeMAP FSRE

Tom is a qualified financial planner with 15 years’ experience in the financial services industry, the majority of his career to date has been spent helping his clients with their mortgages.As our resident life insurance expert, he’s always been very enthusiastic about what is, let’s face it, a rather dull subject. Tom has assisted one of the UK’s top insurers in developing and launching a new life insurance product into the broker market. He’s also very interested in the later life mortgage market and works closely with several lenders in this space, helping them develop their offering.Tom is fully fledged petrolhead, you can usually find him tinkering with an engine somewhere in his spare time.

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