August key turning point in salary vs house price inflation battle, reveals Smartr365

Analysis of data by Smartr365 shows that August key is the turning point in salary vs house price inflation battle.

Key findings from analysis:
    • UK pay enjoyed a 4.5% jump from December-September
    • Meanwhile, UK house prices rocketed by 7.4%
    • July-August saw the biggest drop in house prices recorded this year, while average pay continued to climb

Analysis from Smartr365, the UK’s leading end-to-end mortgage platform, has today revealed that August was a key turning point in the ongoing struggle between UK salary and house price growth, offering hope for aspiring first-time buyers.

This comes as UK inflation hits 11.1%, the highest level recorded since October 1981, according to data from the Office for National Statistics (ONS).

House price growth running out of steam:

The analysis also reveals that although average UK house prices have surged by 7.4% from December to September, August saw the first major sign of a slowdown. House price growth faltered from 2% in July to 0.9% in August and saw no change in September. The shift in prices from July to August remains the biggest fall recorded this year.

Salary growth picking up pace:

Meanwhile, the analysis shows that average UK salaries have grown steadily since January, with no sign of a slowdown – on the contrary, they surged from 0.3% growth in August to 1.8% the following month. While house prices have enjoyed larger monthly jumps, often over one percentage point, salary growth has been more modest but also more consistent. This suggests a promising future for buyers, particularly first-time buyers, with salaries progressively rising whilst house prices are maintained, or indeed, even falling.

Conor Murphy, CEO and Founder, Smartr365, commented:

“Indeed, in what is somewhat of a ‘tortoise and the hare story’ we are seeing salaries steadily increase and house price growth start to tail off, bringing the two on to more an even keel.

“This is positive news for first time buyers, particularly as the cost-of-living continues to rise.

“With external economic forces continuing to affect mortgage rates, it’s more important than ever that buyers seek independent professional advice when looking to purchase a home.

“For their part, advisers need to be armed with the optimum tech tools if they are to serve customers quickly and efficiently.

“Rapid criteria searches, ID verification, and decision-in-principles are all worth their weight in gold as buyers look to capitalise on favourable trends, such as the one outlined today.”

 

Kindly shared by Smartr365

Main article photo courtesy of Pixabay