9.3% increase in house prices in June

There was a 20% increase - up £163 - in first-time buyer monthly mortgage payments since the start of 2022. More buyers, therefore, may lock in longer mortgage terms to bring more certainty to their outgoings especially as lenders are now offering virtually the same rate for either two-year and five-year fixed mortgages. 

Overall annual price growth went up by 9.3%, with Rightmove revising its full year 2022 house price forecast up from five percent to seven percent, despite the cooling market. This is driven by the record low stock volumes struggling to recover enough to meet buyer demand, though there are signs of this improvement. 

In addition to this, the number of new sellers coming to market increased by 13% compared to this time last year - although available stocks are still 40% lower than in June 2019’s level, helping to underpin prices. 

Demand to move is coming off the boil but remains high despite economic and political uncertainty with buyer demand up 26% on June 2019’s levels, though this is down seven percent on last year’s market. 

Commenting on the news, Rightmove’s director of property science Tim Bannister said: “The challenges presented by rising interest rates and the cost of living will no doubt have an effect throughout the second half of the year, as some people reconsider what they can afford. 

“However, there is also anticipation among would-be home-movers that personal finances may become even more stretched in the coming months, with further interest rate rises expected and the energy price cap jumping again in October. 

“Given the political and economic uncertainty at the moment, those who want to move this year, particularly first-time buyers, may seek some financial certainty by locking in longer fixed-rate mortgage terms now before their monthly outgoings increase again.”