2022-07-19-莱坊-UK_Residential_Property_Market_Update_July_2022_2页_274kb

UK Residential Property Market Update: July 2022 Summary

Market Overview

Price growth persists despite softening demand, with UK average property prices up 13% year-on-year in June 2022. Consumer confidence is low, and affordability issues pose risks due to inflation.

National Trends

• Buyer inquiries turned negative, with a net reading of -27%.
• Sales volume dipped, and mortgage approvals remained steady.
• Price pressures continue due to tight supply, though annual growth rates eased.

London Markets

• Prime Central London (PCL) showed resilience, with prices up 2.5% year-on-year, offsetting broader cooling.
• Prime Outer London and country markets experienced moderated growth, averaging 5.1% and slowing to align with economic headwinds.

Lettings and Rental Sector

Rent growth is high (e.g., 8.4% in Prime Central London year-to-date), but not fully linked to inflation. New landlord instructions decreased, easing supply-demand imbalances.

Economic Factors

Rising mortgage rates threaten demand, particularly in lower-price segments, while affordability concerns grow. Forecast indicates house price growth declining to 8% in 2022 and 1% by 2023.

Key Insights

The market faces a balance between high prices and weakening demand, with London leading resilience but uncertainty ahead due to economic conditions.

Source: Knight Frank Research