HOUSE prices are back on an upward march, sending the cost of the average home in
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The upward jolt has defied analysts' gloomy forecasts predicting that skyrocketing mortgage rates would put the
Sales are expected to fall sharply due to prospective buyers being priced out of the market by lenders passing on the
A cost of living crisis eroding purchasing power is also anticipated to chill sales and kick prices lower.
However,
The number of people contacting estate agents about a possible home purchase has climbed 55 per cent in the first couple weeks of 2023, the biggest new year bounce since 2016.
Over the course of 2021, property prices raced ahead, driven by a stamp duty holiday, people relocating to the countryside to capitalise on greater uptake of remote working and rock bottom interest rates.
However, those factors started to reverse last year, causing prices to dip.
Despite January's price jump, experts said affordability constraints caused by banks doubling mortgage rates could choke the housing market.
"We expect that the full effect of affordability constraints and last year's mortgage rate rises will hold back some segments of the market in the first half of the year,"
According to data site Moneyfacts, the rate charged on an average two-year fixed mortgage has doubled over the last year to 5.79 per cent this month.
(c) 2023 City A.M., source