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Property market is cooling after sixth house price record

Asking house prices rise for the sixth record in a row to £369,968 as demand to buy continues although at a slowing rate.

Demand from first time buyers and home movers is 26% higher than the same time in 2019 with housing stocks -40% lower, according to Rightmove, pushing asking house prices to £369,968.

Asking prices rise for the sixth record in a row but the property market is cooling with more regions posting monthly falls such as Wales down -2.9%, Scotland lower by -0.7%, South West down -0.6% and East Midlands lower by -0.4%.

Mortgage costs are rising and first time buyers find repayments have increased 20% or £163 per month since the start of the year and an average of £976 per month.

Asking prices lower for home movers

Home movers have seen asking prices fall -0.3% or £905 from £339,675 in June to £338,770 in July although over the year are up by 9.8%.

This table from Rightmove shows average UK asking prices (excluding London) for April and July 2022 for each sector and annual change.
Sector July June
First time buyers £224,943 £224,251 +8.5%
Second steppers £338,770 £339,675 +9.8%
Top of the ladder £682,811 £678,628 +9.9%
For first time buyers asking house prices are up by 0.3% and over the year post the lowest rise of 8.5% and average property values of £224,943.

Second steppers moving home have seen asking house prices up 9.8% over the year and top of the ladder up 9.9% with average property values of £682,811.

See how much your monthly mortgage interest payments would be if you are moving to a new home at this link:
Mortgage cost calculator with instant results and figures for buying a property.

The lack of supply will keep property values higher and Rightmove have revised their house price growth forecast from 5% annual growth to 7% for 2022.

House prices in London are averaging 7.4% for the year after remaining near to level during the pandemic with the highest rise in Merton up 11.6% and property values of £758,315.

Double figure growth over the year was experienced by the borough of Barnet rising 11.3% with Havering higher by 11.2% and Bromley up by 10.3%.

More sellers in the market

Housing stock levels are struggling to meet buyer demand although the number of sellers coming to the market are up by 13% year-on-year.

These new sellers will achieve good prices for their properties which could explain higher stock levels and higher levels of demand, despite rising mortgage costs.

First time buyers can reduce these costs with a larger deposit from family members as equity release buyers can access cash using a lifetime mortgage and gift to children and grandchildren.

More properties on the market means more choice and less competition for buyers in a fast moving market and it is unlikely to see significant price falls in the second half of the year.

Due to the rising cost of living and affordability, demand is expected to return to more normal levels and rising interest rates may see more homeowners to lock in longer term fixed rate mortgages.

What are your next steps?

Speak to our LCM mortgage advisers if you are moving home and looking for a competitive mortgage deal. Learn more by using the property value tracker chart and equity release calculator.

Start your free home mover quote and we can find mortgages with low rates for your property purchase at this link:
Free mortgage quote with low mortgage rates for your property.

If you use equity release to repay an interest only mortgage, we can recommend lifetime mortgages so begin your equity release quote for the latest provider offers.

Mortgage Best Buys

These are examples of mortgage products we can approach with many more offering interest rates and flexibility to meet your needs.

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Property market is cooling after sixth house price record

Asking house prices rise for the sixth record in a row to £369,968 as demand to buy continues although at a slowing rate.

Call for your free quote 0800 955 0058


    Equity Release may involve a Lifetime Mortgage or a Home Reversion Scheme. To understand the features and risks, please ask for a personalised illustration. Equity Release may affect your entitlement to means tested state benefits and will impact on the size of your estate. For Equity Release London City Mortgages charge a fixed fee upon completion of £695. For Mortgages a fixed fee is charged on application. Typically this is from £295 up to £495 for the services selected.


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