Whilst it is fair to say that the housing market it beginning to slow, despite the average house price being £282,753, the largest growth since the financial crash. There are a number of factors that will cause this slow in house prices. Firstly the increase in both energy prices and national insurance. With the pinch on these two living expenses people will have less affordability to move house or upsize.
Seeing as lenders typically work from an affordability model, these increases alone may affect the loan size offered to people applying for mortgages. This means less people are going to be in the position to buy therefore the housing demand lowers. Meaning for every property on the market fewer people will be looking and therefore the prices will either reduce or steady with fewer increases in prices.