It’s no secret that the cost of living is increasing. With energy prices soaring and hikes in interest rates, this has put a strain on pockets across the country.
Now, experts are predicting a sharp rise in property prices due to there not being enough properties to meet the current buyer demand.
This shortage is expected to drive property prices up by over five per cent by the end of May, meaning that house prices will reach an all-time high of £352,984.
The research shows a small dip in prices in March and April, and then a 6.7 per cent increase in May, possibly due to buyers trying to close deals quickly before rates increase again.
This has a negative impact on first-time buyers trying to save for a deposit. However, with mortgage costs continuing to rise, some potential buyers are deciding that it is now or never, while they can still lock in a low fixed rate deal.
This is also challenging for existing property owners and investors who are either looking to take the next step up the property ladder or grow their portfolios.
With such a competitive market, even those who have sold their previous property may find that the number of houses they can afford is diminishing.
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