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The Rising Cost of Living in the UK: How It's Affected the Home-Buying Market? -Compare Conveyancing

As a prospective homebuyer, you may have been watching the UK's housing market with a certain amount of apprehension. The cost of living in the UK is rising, and this has had a knock-on impact on the cost of property. Today, we're going to explore how the rising cost of living in the UK has affected the home-buying market.

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The Cost of Living and Property Prices

It's no secret that the cost of living in the UK has risen steadily over the past few years. According to the Office for National Statistics, the Consumer Price Index (CPI) rose by 2.1% in the 12 months to May 2021. This increase in the cost of living has had an impact on property prices, which have also risen.

The Impact of the Pandemic

The pandemic has had a significant impact on the housing market, and it's fair to say that it's made things more complicated. The pandemic has led to a shift in demand for properties, with many people looking for larger homes with gardens. This has pushed up the prices of larger properties, making it more difficult for first-time buyers to get on the property ladder.

The Cost of Living and Mortgages

The rising cost of living can also impact the affordability of mortgages. As the cost of living increases, it can become more difficult for people to save money for a deposit. This can make it harder to get a mortgage in the first place, as lenders will generally require a larger deposit for higher-priced properties.

Regional Differences in Property Prices

One interesting trend to note is that property prices can vary significantly depending on where you're looking to buy. For example, according to the Halifax House Price Index, the average house price in London is approximately £508,000, whereas the average house price in Yorkshire and the Humber is around £197,000. This regional variation means that in some areas, the cost of living may not have as great an impact on the housing market as in others.

What Homebuyers Can Do

If you're a homebuyer trying to navigate the UK's housing market, there are a few things you can do to help yourself. Firstly, consider looking in areas where property prices are lower, as this can help to offset some of the impact of the rising cost of living. Secondly, remember that lenders will often take into account your monthly outgoings, so try to reduce any recurring expenses where possible. Finally, work with a mortgage advisor who can help guide you through the process and offer advice on what mortgages might be available to you.

The rising cost of living in the UK has had a clear impact on the country's housing market. Property prices have risen, and it's becoming more difficult for first-time buyers to get on the property ladder. However, by being savvy and taking a few key steps, homebuyers can still find the right property for them. Remember to look in areas where prices are lower, reduce recurring expenses where possible, and work with a mortgage advisor who can offer expert guidance. By doing so, you'll increase your chances of finding your dream home in a challenging housing market.

-Compare Conveyancing


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