House prices in decline
March 13th, 2023
Nationwide reports that “House prices fell for the sixth consecutive month in February, down by -0.5%. Prices are now down -3.7% from their pre-mini budget peak last August, and down -1.1% on an annual basis.”
Higher mortgage rates have directly contributed to the decline in activity within the housing market.
However, first time buyers have helped keep the decline at bay. Savills reports that “First time buyers have remained undaunted so far, with their numbers 8% higher in December than the pre-Covid average. Despite the challenges of securing a mortgage with the current high rates, high levels of rental growth and fierce competition for rental stock provide them with a strong incentive to access the housing ladder if they can.”
Relevant links:
