At the beginning of July, Zoopla released its analysis of the May 2022
UK House Price Index, showing a year on year increase of 8.4%, with
our local area in Bournemouth showing this to be 10.2%.
The analysis also shows that the average value of a house now
stands at £251,550, that demand is beginning to recede to more
normal levels, and that the average time to sell a property had
increased by around 10%.
Debbie Boyes, Director of Willowlace Limited trading as Debbie J
Boyes Professional Mortgage Advisors says “Whilst I do not have
a crystal ball, I believe that these figures indicate a much needed slow
down in the market, and that the Zoopla report indicates a “Steady As
She Goes” situation, rather than an expected fall in house prices.”
“Some of our Clients have been accusing Lenders of being greedy in
raising their mortgage rates, but their rates are in general a reflection
of the availability and cost of wholesale money. We are now seeing 5
year and even 10 year fixed prices at a similar level to 2 year fixed
rates; the question therefore arises -does this mean that the
wholesale markets expect rates to reduce again in a few years – who
knows?”
“With further increases in the Bank of England Base Rate expected
now, more than ever, Borrowers need experienced, sound mortgage
advice and an understanding of the impact on their mortgage
payments should interest rates rise further.”
Zoopla ended its analysis by stating that “We do expect the rate of
price growth to ease” whilst anticipating “annual price growth to reach
+3% by the end of the year.”
