Friday News #0138 – House Price Growth Slows But Still Clocks 10% Gain

As we move towards the festive break in the UK, the property market continues to show no sign of abating. At the risk of sounding like a broken record, the demand for properties to buy and rent across the UK is still far greater than the supply of property to the market – putting the market on a positive footing for price growth.

With interest rates remaining low, and the lack of property available to rent, it’s of little surprise that so many investors have chosen to secure buy-to-let financing over the past 12 months. These current market conditions look set to stay; 2022 is already set to offer an excellent opportunity to investors seeking a rental property.

Here’s what we’ve seen in the news this week:

Huge Rise In Buy To Let Mortgage Activity In 2021: UK Finance, the umbrella group representing major mortgage lenders, says there will have been a massive 83 per cent surge in buy to let lending by the end of 2021. This will take the total borrowed by BTL investors in 2021 to £18 billion. But this is dwarfed by the increase in house purchase mortgage borrowing – a total of £200 billion, up 53 per cent on last year. Read more. 

House Price Growth Slows But Still Clocks 10% Gain: House prices moved up by 10.2% on an annual basis in October, show new figures from HM Land Registry. This compares to a 12.3% increase seen in September. On a monthly basis there was a slight softening too, with house prices ticking down by 1.1%. Read more.

Another Strong Market In 2022 Says Latest Forecast: Demand will continue to outpace supply well into next year. That’s the view of the Reallymoving House Price Forecast, based on an analysis of over 18,000 conveyancing quote forms. The service expects annual house price growth of 2.3 per cent in January as another strong year begins. Read more.

Housing Market: Recent Trends And If Property Investment Is A Wise Move For 2022: House prices are at a 15-year high even after the end of the stamp duty holiday. Read the analysis of the market and outlook.