We have summarised some key points from the Zoopla UK House Price June Index Report, published on 2 August 2022. The information will interest anyone considering buying or selling a domestic property and landlords and property investors.
Current market activity
House prices and sales continue to increase despite the current economic climate. There is an indication; however, this will gradually slow down as the demand for houses reduces later in the year.
In Nottingham, the annual percentage change in house price is up by 10.7% compared to the average increase in the UK, which is up by 8.3%.
The Zoopla House Price Index city summary for June 2022 shows the following:
(Source: Zoopla UK House Price June Index, published on 2 August 2022)
Factors impacting on house sales
The pandemic is still having an impact on the housing sector. Data shows demand for homes remains 25% above the average over the last five years. There are several factors affecting house moves:
- The rise in working from home has resulted in people looking for new properties, giving them more space to work from home.
- Flexible working allows people to move to the suburbs where house prices are lower; this has particularly helped first-time buyers who can afford to buy their first property sooner than if they were looking for homes in the city.
- There has been an increase in older workers (50–70-year-olds) leaving the labour market. This change in their circumstances has resulted in many looking to downsize to reduce their expenditures.
These factors may explain why sales and price growth have remained more resilient than expected, given the economic headlines.
In summary, the Zoopla Report indicates house price growth to continue to slow over the remainder of 2022 but at a slower rate than was originally expected. The pandemic factors stimulating demand will continue to play a role. Still, the outlook for housing demand will hinge on how high-interest rates rise to bring inflationary pressures under control.
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