The cost of buying a home in the UK is just 1.9 per cent more than it was 12 months ago, as a result of a slowdown in annual house price growth.
Consequently, it would cost homebuyers around £5,000 more to purchase a property in January 2023 than in January 2022, according to the latest findings from Halifax.
Director of Halifax Mortgages Kim Kinnaird stated this is the lowest level for three years, dropping from double-digit growth earlier in 2022. In fact, the average house in the UK was £281684 in January, which is £12,000 cheaper than in August last year.
“We expected that the squeeze on household incomes from the rising cost of living and higher interest rates would lead to a slower housing market, particularly compared to the rapid growth of recent years,” said Ms Kinnaird.
She recognised falling house prices, coupled with improving mortgage rates, could make it easier for first-time buyers (FTBs) to get on the housing market.
Additionally, FTBs are still able to enjoy the stamp duty holiday introduced in October 2022. This means they do not have to pay stamp duty land tax (SDLT) on the first £250,000 of the value of the property, after the government increased it from £125,000 to get the market moving.
When it comes to monthly changes, property values typically remained the same from December 2022 to January 2023, following four months of declining prices.
For more information on buying in this unstable market, contact estate agents in Leicester who can give a better idea on the trends in the local area.
