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.
London vs the Rest
London prices remain significantly elevated relative to earnings. First-time buyers face a near-impossible affordability challenge in many inner boroughs.
The North-South Divide
Yorkshire, the Midlands and the North West offer significantly better value and, in many cases, stronger rental yields for investors.
Mortgage Market Update
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.
Our Assessment
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.
