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.

Meet the rest of the Advantage Team

Financial protection: The key options that could protect your lifestyle and family

Financial protection could provide you with a cash boost when you need it most, and there’s more than one type to consider. Last month, you read why financial protection provides a crucial safety net should you face an unexpected shock. Now, read on to find out more...

Landlords, could your loved one face a tax bill if they inherit your portfolio?

Building a property portfolio could provide you with an income stream and greater long-term financial security. It can also make your finances more complex, including when you’re deciding how to pass on assets to your loved ones. With house prices rising, many...

Why tariffs and a trade war could mean your mortgage interest rate rises

As inflation stabilised following a period of prices rising more rapidly than usual, there were expectations that the Bank of England’s (BoE) base interest rate would be cut throughout 2025. However, a potential trade war could mean the opposite happens and lead to...

Bank of Family is now funding more than 10% of buyer deposits

Parents and other family members are increasingly funding deposits as house prices soar and younger generations struggle to save the money they need. According to a March 2025 article published by MoneyAge, 10% of buyer deposits are now funded by loved ones following...

Financial protection: How it could help you bridge an income gap

You don’t know what’s around the corner, but that doesn’t mean you can’t prepare for it. A financial shock could derail your short- and long-term plans and might mean you face additional stress at an already difficult time. So, creating a financial safety net that you...

The pros and cons of borrowing more through your mortgage

Looking for a way to fund a large expense? Whether you want to make home improvements or buy a new car, your property might provide an answer. Depending on your circumstances, you might be able to borrow more through your mortgage. This would increase the overall size...

Your options if your interest-only mortgage ends soon

An interest-only mortgage could help you manage your budget more effectively, but it can also present a challenge when your existing deal expires. You might be wondering what your options are and how they could affect your long-term finances. While interest-only...

5 top tips for securing a mortgage

Applying for a mortgage, whether you’re buying your first home or remortgaging, can feel like a daunting task. While you might be putting it off, tackling it sooner could save you money and make it well worth your while over the long term. As mortgage advisers, we’re...

3 ways your property could be taxed as a homeowner

The UK property market has been a source of frustration, and the Labour government has identified the sector as a major barrier to economic growth. One of the areas that may be reviewed is how property is taxed. Indeed, the Institute for Fiscal Studies suggested tax...

The homebuyers checklist: 8 essential tasks to complete if you’re buying property

Buying a new home can be an exciting time, it could represent a new chapter of your life, whether you’re moving to a new location for work or searching for a property that will give your growing family more space. Yet, it can feel like there’s a lot to juggle too, so...

Celebrating more 5-star reviews than any other independent broker in Bristol!

Contact us today to find out why we've received over 650 hundred 5-star Google reviews

You have Successfully Subscribed!