Kate Faulkner reviews the latest data, which shows how property prices in towns and cities are mirroring regional patterns.
10th Apr 20260 741 2 minutes read Kate Faulkner OBE
Looking at the wide variation in property prices across our cities, the pattern mirrors what we are seeing regionally. Northern areas are generally performing well, while many southern locations are still struggling to recover to the average prices reached in 2022.
Of the 30 cities we analyse:
– 12 have higher prices than four years ago – Gloucester prices are broadly unchanged – 17 cities remain below their 2022 levels
This highlights just how uneven the recovery has been since 2022 across the UK.
Impact of mortgage rates on property pricesNaturally, there is growing discussion about potential mortgage rate rises, linked to broader economic pressures such as the war in Iran.
However, even if rates do increase slightly this year, the key point is: Price growth is unlikely to recover as quickly as it might have done if rates had fallen as previously expected.
In short, the pace of recovery is likely to remain subdued, so although mortgage rates might increase slightly, property prices are likely to stay the same – or continue to see small falls, which could actually be good news for those buyers that can afford to purchase a property at a slightly higher mortgage rate.
For buyers, this creates an important trade-off to consider:
Buy now and potentially:
– Pay a slightly higher mortgage than expected – Benefit from lower property prices
Or wait and risk:
– Lower mortgage rates in future – But higher property prices and missing out on a dream home
Many buyers may save thousands – if not tens of thousands – on the purchase price by acting sooner.”
Many buyers may save thousands – if not tens of thousands – on the purchase price by acting sooner, so even if the mortgage rate is higher, this could be mitigated by buying a property at a lower amount.
Mortgage advice mattersThis is where a good mortgage broker can make a real difference. They can help buyers assess whether they can afford to move now, how resilient they are to future rate changes andwhether waiting is a sensible strategy.
Some may choose to delay, hoping the Iran conflict stabilises and market conditions improve; however, the challenge with waiting is that we are now operating in a far more volatile global environment.
So one issue may settle, but another could quickly emerge, predicting short-term stability is increasingly difficult.
As a result, from a practical perspective, if the right property is available, it is affordable now and into the future , and buyers can put safeguards in place against future shocks, then moving sooner rather than later may be a sensible option.
Ultimately, these decisions are highly personal and depend on individual finances and risk tolerance so independent, qualified advice is essential and mortgage advisers clearly have a key role to play in helping buyers navigate the months ahead.
Appendix: City/town property indices price tracking
For city/town tracking, we use Land Registry (government data) and Zoopla/Hometrack. The Land Registry data is useful because we can analyse how property prices have changed over time and this helps us to put today’s price information into context.
The Zoopla/Hometrack data is useful as they take into account the change in mix of property transactions during the pandemic to houses away from flats. This has meant the likes of the Land Registry and other indices have over exaggerated price changes year on year.
Tagshouse prices 10th Apr 20260 741 2 minutes read Kate Faulkner OBE Share Facebook X LinkedIn Share via Email