Property giant Zoopla has released the latest national house price figures including a breakdown for Bristol. Its new House Price Index released today (December 22) highlights the average house prices in different UK cities and the annual percentage change of house prices in those areas.
With so many people wanting to buy their own houses you might expect the demand for homes to be higher than ever, especially in a fast-moving property market like Bristol. But some property experts in the city have warned that with the cost of living crisis, the house price crash has already begun.
Zoopla's national findings show that many buyers are "holding out to see what the market and economic outlook is in January". Demand for homes is down by 50 per cent when the quarterly growth rate is compared.
Read More: Bristol fourth most searched-for by homebuyers on Rightmove
In Bristol it was found that the average house price in the past 12 months was £333,000, which was an increase of 7.7 per cent annually. Prices in the area have gone up but not as much as some other cities around the UK - Bristol's growth sits at number nine on a table of 19 cities.
Nottingham saw the most growth year-on-year at 10.1 per cent, taking its average to £196,900 - still one of the cheapest cities on the list. Glasgow had the cheapest house prices of the cities at £140,200, followed by Aberdeen at £142,100 then Newcastle at £147,200.
It will be no surprise that London topped the list for highest average house price at £524,400 but it recorded one of the lowest annual changes in prices with a 4.1 per cent rise, against a national average of 7.2 per cent. The findings in the report state that in central London "prices have fallen over the last five years and will see further falls in 2023".
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Zoopla’s report also suggested that urban areas are seeing a return of homebuyers, after a slowdown in the post-lockdown property boom in rural and coastal areas including in the South West. Places like Swindon and Milton Keynes have seen above-average increases in demand for homes, with Swindon's demand up 56.8 per cent compared to the five-year average.
The property experts predict that in 2023 affordable cities and the flat market will “fare best” with many people focusing on what they can get for their money at the cheapest price. This could be good news for Bristol, especially for a younger generation who are looking to buying their first homes.
While prices are up on average at current, prices are expected to fall in the first half of the year as momentum falls away. Richard Donnell, executive director at Zoopla, said: “2022 has been a strong year for the housing market with the second strongest year for sales in more than a decade at 1.3m.
"The fallout from the mini budget, with mortgage rates hitting 6.5 per cent, brought the market to a near standstill in the last quarter. We expect buyers to return to the market in the new year, but they will be far more cautious and price sensitive.
"Serious sellers need to be realistic on price and get the advice of an agent on how to market their home. While mortgage rates will start 2023 lower, the impact on pricing will be felt more in the higher value markets of southern England than the more affordable markets elsewhere."
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