Will house prices drop?

Jul 29, 2022

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.

Steven Morris – Advising Director

CeMAP CeRER

 

Steve loves a complex mortgage. Most recently he has used his technical geekery to work his way up through Which? Mortgage Advisers, progressing to Senior Adviser and then Onboarding Manager. There, he was responsible for hiring, training and managing new advisers.

He also ran the monthly new starter inductions and wrote and maintained the telephony advice standards of the company. Outside of work Steve can be found coaching and being run ragged by his local under 10’s rugby team, Bristol Harlequins RFC.

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