Nick Millican Discusses Challenges and Trends in the UK Housing Market as Prices Remain Below Peak
According to real estate expert Nick Millican, the latest house price data certainly paints an interesting picture. This, because it has been reflecting how it’s been a bit of a rollercoaster ride for the UK property market this past year. The overall national figures show an average 1.8% drop in house prices for 2023.
Thus, it strives at leaving values 4% below that summer 2022 peak. However, it’s not all doom and gloom, with places like Northern Ireland seeing housing prices actually increase by a solid 4.5% and Scotland edging up 0.5%. But when you dig into the details, Nick Millican comments, it’s pretty clear that these sky-high mortgage rates have really taken their toll on affordability for a lot of buyers.
The typical first-time buyer has to shell out a whopping 38% of their take-home pay on mortgage costs alone. According to Nick Millican this has put such a dent in the market, even with incomes technically rising. Furthermore, despite deposit requirements easing off a bit from their peak.
For the agent, it’s been so tough for people to comfortably get on or move up the property ladder this year, Nick Millican adds. Thus, the real estate agent makes a fair point that while there are signs of mortgage rates finally starting to creep down again, the overall housing market is still likely to stay pretty subdued for a while, thanks to that broader economic sluggishness.
Looking ahead to 2024, his analysis suggests the combination of lower house prices, the declining rates, and gradually improving incomes might slowly make things a bit more affordable. Nevertheless, Nick Millican finally comments, a full-blown rebound in prices or market activity seems rather optimistic based on the current climate.