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TODAY'S OTHER NEWS

Capital appreciation to rumble into 2023 despite gradual slowdown

Zoopla’s latest house price index suggests capital appreciation will rumble into next year despite the slowdown. 

Levels of price growth will return to a five year average by the end of this year and will continue to slow in 2023 but the portal insists that fears of a market crash and double digit price falls are unwarranted - simply because demand is so high.

Demand for homes has slowed over 2022 but remains 25 per cent above average over the last five years and on a par with this time last year. 

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The average home is now worth £256,600, up £19,700 year-on-year. A stronger than expected desire for households to move means that overall, housing sales are expected to reach 1.3m - that’s 100,000 more than was originally forecast at the beginning of the year. 

Zoopla says this also means the pace of house price growth is slowing less quickly than expected and by the end of the year, prices are expected to have risen five per cent.

“The housing market is not immune from higher mortgage rates which we are starting to see increase quickly. Buyer interest is expected to slow over the coming months as people tighten their belts and spend with more caution which will see price growth weaken further. Whilst we don’t expect current trends to lead to a marked drop in house prices next year, buyers will become more wary and it is important sellers are realistic when pricing their homes to sell”.

London remains the UK’s most unaffordable housing market where house prices are 11.6 times average earnings and prices are rising at the slowest rate of four per cent.  Zoopla’s data shows demand for homes is weakest in markets that have been experiencing some of the highest price increases in areas like the South West and Wales, while demand remains strong in more affordable markets and cities outside the South East.  

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    But it's not real capital appreciation when it is below true inflation, then after that take off the CGT.

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    Another news article claiming prices are going up, when in fact they have increased below inflation so have gone down in real terms.

    Any increase below inflation is not a true increase and should not be reported as such - how is this so complicated?

  • George Dawes

    I hope so , my dopey tenant wants to leave as he wants outside space , the berk didn’t realise we’ve got two terraces and two verandahs until I showed him , 18 months into the let 😂

    God help us all if this lot are the new generation

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    As a Landlord whom is selling, this for a change is positive news.
    I understand comments on inflation but all is relative. My budget for fuel, food and heating is a lot less than a house that is worth £250,000.
    Therefore in real terms for me this is an increase.
    That said it's not the reason i'm selling. Government continued interference and i might add non-sensical interference is to blame, especially with section 24 but also having digested that white paper on housing reform.....well !
    Overall I think it will be healthy for the housing market to slow down as this will help to stabilise the market, but with Bank of England changing the pressure test is going to increase demand again i'm sure. This just goes to show that they should not tinker!

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    The white paper seems deliberately designed to ensure that we sell up.

     
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