Despite 2022 representing one of the most challenging economic landscapes seen in over a decade, the UK property market has managed to grow at an unexpected rate. The Office for NationalStatistics (ONS) reported on Wednesday that UK house prices increased by 10.3%in November compared to the same month in 2021.
This may come as a surprise, following the major withdrawal of mortgage offers from almost all of the country’s lenders in Q4 2022. At the time, Nationwide Building Society, RBS and HSBC informed brokers that it was discontinuing most new mortgage programmes for the remainder of the quarter, with some offers waiting in contracts to be cancelled without delay.
There had been many looking to purchase their first home in 2022, but found the quickly escalating rates too much of an obstacle. Most new buyers opt for fixed-term contracts, which at the time looked unaffordable for most having spent much of the last few years simply saving for the deposit.
This has in turn had a major impact on the rental market, with more people looking to rent in the hopes the interest rates will decline towards the end of 2023. Developers have come under increasing pressure to build as many new homes as possible, in a bid to meet the demand.
The North West region in particular is seeing some of the strongest growth, with its more affordable rents and fast growing local economies. Liverpool appears to be at the centre of this surge and has recently been voted the greatest city in the UK to live and work by theCity Liveability Index.
The UK House Price Index outlines the average house price in Liverpool at the end of 2022 was £180,000. To put this into context, the national average price for property is £296,000, illustrating the real value on offer in Liverpool.
With the city looking to invest over £500m in the local area in 2023, the future is looking bright for thisNorthern Powerhouse hub.