According to real estate professional Nick Millican, house prices in the UK are 4% less than the all-time high. However, first-time buyers are still struggling to be able to afford to purchase one. This is the second straight month property values have fallen, Millican said.
In April the average house price was £261,962. But over the past year 49% of first-time buyers planning to purchase a house within 5 years are delaying their plans because of high mortgage rates and high house prices, the real estate agent pointed out. And this is when Nick Millican comes in handy.
Falling House Prices
In April, UK property prices fell 0.4% after being down 0.2% in March, Nick Millican said. The house price growth rate was down 0.6% in April and 1.6% in March because of the ongoing affordability pressures. That will make people buy houses in less expensive areas, Nick Millican anticipates.
About 32% of buyers said buying smaller houses than they wanted is an option and 28% said they would buy houses needing work. And 38% of house buyers said they compromised on the house they bought. On average, Nick Millican adds, Londoners paid £7,500 more annually on their mortgage. There are starter flats for first-time buyers for between £350k and £400k in some postcodes.
Increased Prices And Demand
Nick Millican anticipates a growth in house prices and buyer demand because of rate cuts later this year. More house listings and robust negotiations will give buyers more choice, increase viewing activity, and lead to more sales. Millican says with rising mortgage approvals month-to-month market volatility remains.