Housepresso 1 May 22
Why house prices don’t need to fall to solve the affordability crisis
When we talk of a housing affordability crisis the consensus is that house prices need to fall to address the issue of affordability. We disagree. We believe the solution to the affordability crisis is to take a fresh look at the way we finance our homes.
Two in five looking to move
The latest Nationwide House Price Index revealed that two out of five people are looking to move this year, with 40% looking to move and only around 4% of homes transacting each year house prices are likely to continue to rise
Will my mortgage payments increase by £1,000?
Rishi Sunak, the Chancellor of the Exchequer, told Cabinet colleagues this week that he expects Bank Rate to increase to 2.5% over the next year. He warned that a one percentage point rise in the typical mortgage would add an extra £700 to the mortgage costs each year (or just under £60 per month).
However, few of us regard ourselves as 'typical', so team twindig has put together a mortgage payment calculator and ready reckoner tables to help you see how a one percentage point increase in mortgage rate would impact you.
House prices winners and losers in the South West
The latest data from the Land Registry reveals that the average house price in the South West of England is currently £312,700.
On average house prices in the South West of England increased by 1.2% or £3,650 over the last month
Over the last year (last 12 calendar months) average house prices in the South West of England increased by 12.5% or £34,710
Click read more to see the winners and losers at a local authority level
Twindig Housing Market Index
The Twindig Housing Market Index fell by 3.2% to 77.6 this week, which came as a surprise as house prices rose and heavyweight housebuilders reported burgeoning order books.
On Friday the Nationwide reported that house prices rose again, albeit at a slower rate in April, and April was the 11th month out of the last 12 where annual house price inflation has been in double digits. However, Nationwide did report that they expect the UK housing market to slow in the coming quarters.