Is the Housing Market about to Crash?

In recent years, post-lockdown, we have seen massive fluctuation in the housing market with prices increasing by significant amounts and the demand for houses rising. While the market since Covid has proven difficult for first-time buyers, some sources claim that there may be hope in the foreseeable future for those looking to buy in the form of a housing market crash.

The latest Halifax house price index has shown that the average house price has fallen 2.5% in the year to July, making it the fourth consecutive month where prices are decreasing. Since May, houses are seen to be on average 2% (or £8,000) which is the most significant fall since 2018. The latest Rightmove data has also shown a fall of prices from 1.9% to 0.9% last month. Alongside all these statistics, The Times are agreeing that house prices have fallen at the fastest rate in 5 years.

Despite all of this, the average property is still worth around £45,000 more than before the pandemic in 2020 and many experts are denying that a property market crash is on the horizon. Today’s Conveyancer has said that the UK will avoid a crash despite the Bank of England raising the mortgage base rate to 5.25%. 6/10 on their panel of experts said that a crash would be avoided. Nationwide Building Society have said that asking prices for detached properties have increased 26% (approximately £78,000) and flats have increased by 13.4% (approximately £23,000). Figures from the Office for National Statistics have also proven that semi-detached housing and terrace housing asking prices are still on the rise.

It is still largely unclear whether the housing market will experience a crash towards the end of 2023 but with experts constantly debating and discussing what the future of the housing market holds, we can rest assured knowing that it is in good hands.