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With May not far from completion, a few of us will no doubt be wondering where the sunshine we often see at this time of year has gone.
Sadly May so far from a weather perspective has been something of a damp squib. But in the housing and mortgage world, there have been signs of life.
There are plenty of reasons for optimism among first-time buyers, more 95% LTV deals out there, and overall mortgage borrowing has been on the increase. This means that after a difficult 12 months, things look more stable for the wider mortgage industry.
This sentiment is being reflected in predicted house prices, with one industry expert making it clear they expect to see house prices on the rise in June and July.
In the latest Roots Mortgages blog, we take a look at why this is being predicted, and what that means for you.
What’s being predicted?
The latest updates to Reallymoving’s housing price forecast indicate that house price increases could be on the way.
According to their forecast, house prices have been steadily decreasing since October 2020, when prices averaged around £340k. Since then there has been a progressive drop off, with February 2021 having an average of £329k, March 2021 £320k and April 2021 £321k.
This month has seen prices drop even lower according to the forecast, to £302k. Things are set to change however, with the trend set to reverse in June and July.
June 2021 according to Reallymoving will see average house prices rise to £311k, while July 2021 will see this grow again to £323k.
How are they working this out?
Reallymoving is a provider of instant quotes for home moving services. The data they have collated is based on their conveyancing quote forms.
As users tend to get these quotes around 3 months before completion, Reallymoving is able to offer fairly strong predictions around market trends and which direction things are heading in.
The stats laid out above are averages for the whole of the UK, but Reallymoving also offers these insights on a regional level. These are important to look at, as those kinds of prices won’t necessarily be close to what you will be roughly forking out in your part of the UK. So seeking out the closer regional analysis on the Reallymoving site is worthwhile.
What does that mean for me?
It means if you’re in the process of buying a home and agreeing terms, getting things over the line might be in your interest.
The signs suggest that the industry and house prices are only likely to move in one direction. If you are looking to get a house sorted this summer, moving soon rather than later might be a wise move if these predictions come to pass.
With regards to contractor mortgages and freelancer mortgages, doing what you can to limit roadblocks can be advantageous here. Take a look at our recent blog on reasons why contractors and freelancers might be refused a mortgage for some good pointers.
And securing some free mortgage advice is never a bad idea. This can help you stay on top of changing trends and keep your finger on the pulse when looking to buy your next home.