The bullish housing market of the last 18mths is showing signs of cooling, a report by major lender the Halifax, says.
The lender indicates, that while house prices climbed again last month, the 10.5% increase year-on-year was slowest rate of growth since the start of the year.
Despite the very real cost of living pressures many people are experiencing, demand for properties – and lack of supply – remains the primary reason driving the continued climb in house prices. Despite this, the housing market has now begun to show signs of slowing down. Mortgage activity has started to come down and, coupled with the inflationary pressures on household budgets, it’s likely activity will start to slow.
However, over the longer term, the Halifax – and other market watchers – are not predicting a correction, again because of supply constraints. Instead, they predict that house price rises over the next five years, will be more muted in areas that have already seen phenomenal recent growth – the wider South-East region for instance – compared to areas further north, where prices are generally lower and affordability issues less of a concern.
Another driver for house price growth, will be whether there is a relaxation of lending criteria. We will continue to watch the market and report back to you.
if you are looking at investing in Kent right now, check out our articles each month on Property Investing Spotlights – this one is for the Maidstone area in particular.
