The UK housing market has defied predictions of a severe crash — but it has not been painless. Prices have fallen modestly in real terms while nominal values have been broadly flat.
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London vs the Rest
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London prices remain significantly elevated relative to earnings. First-time buyers face a near-impossible affordability challenge in many inner boroughs.
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The North-South Divide
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Yorkshire, the Midlands and the North West offer significantly better value and, in many cases, stronger rental yields for investors.
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Mortgage Market Update
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Fixed mortgage rates have begun to fall but remain well above their pandemic lows. A two-year fix at 4.2% is achievable for borrowers with 25% deposits.
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Our Assessment
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For long-term owner-occupiers, now is a reasonable time to buy in most markets. Investors should focus on yield rather than capital growth expectations.
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