Housing price drops signal further opportunities for homeowners

The news from Nationwide building society that House prices in the UK have fallen at their fastest annual pace in nearly 14 years, is concerning but also signals opportunities for home buyers.

The building society revealed in its House Price Index (HPI) that prices in the year to May fell by 3.4%, the biggest fall since July 2009. This equates to a monthly price drop of by 0.1%, with the average property price now standing at £260,736. Average prices remain 4% below their August 2022 peak. so what does this mean to homeowners and buyers?

Well clearly the housing market has slowed due to the rise in interest rates, cost of living, and much more limited mortgage deals. This means that construction of new houses will slow, builders and tradesman will become more available, and albeit material costs seem to continue to rise, there will be good deals available as manufacturers need to continue to produce their products.

So if you are looking to move it is a buyers market and don't be afraid to make cut-price offers, you never know what might be accepted, but also if you value your home more highly than the market value now commands, why not stay where you are and invest in improvement and extension? History tells us that property will always increase in value in the long-term, so make yourself comfortable for the coming years and sit it out. Moving house is all about the timing, and maybe now is not the time.

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