UK House Prices Rise, but Forecasted Decline Expected This Year
Politics
The UK house price market has seen a steady increase over the past three months, but is expected to see a decline in 2023
The UK house price market has seen a steady increase over the past three months, with a 0.6% rise in properties priced between £250,000 and £499,999 and a 1.3% fall in those priced above £500,000. However, according to a recent report by the Office for National Statistics (ONS), the UK housing market is expected to see a 0.4% decline in 2023.
According to the ONS' latest Housing Market Update, the median selling price of detached homes increased by 0.7% in March compared to February, while the number of sales decreased by 4.2%. The number of sales also fell in the London property market, which saw a 14.8% decrease in the number of sales.
The ONS' report notes that there were 57,199 new homes completed in March, up from 44,202 in February, but the number of completions was lower than average for the last five years.
Despite the continued growth in the housing market, there are concerns about the impact of rising house prices on the cost of living, particularly for households earning low wages. The government has been working to address these issues, launching several measures aimed at reducing the strain on families, including increasing the personal allowance threshold and making it easier to buy a home with a shared mortgage.
However, the report highlights that the housing market remains challenging, with the ONS expecting a further 0.3% decline in house prices this year. The report concludes by noting that the housing market is still one of the strongest sectors in the economy, with the number of transactions continuing to rise despite the recent slowdown.
In my opinion, the recent increase in house prices is a positive development for the housing market. It shows that demand for properties is increasing, and that supply is catching up with demand. However, I agree with the ONS that further action needs to be taken to address the issue of rising house prices, as they have an impact on the cost of living for many people. Additionally, the government should continue to work towards making it easier for people to buy homes with shared mortgages.
