UK Rural Housing Market has Huge Upside

Price growth slows but not stagnant

Analysts predict that overall price growth in the UK property market will slow by the end of the year as benchmark and mortgage rates rise, as well as the impact of rising living costs. Digits down to single digits. But with many people still enjoying the convenience of working from home policies and the hybrid working model offering commuters great flexibility, they expect the rural market to continue its strength.

High-end property demand remains strong

Analysts said persistent inventory shortages kept demand high in rural markets and supported prices. According to a Savills survey published in April this year, the undersupply was most pronounced at the top end of the market, with purchases of homes valued between £1m and £2m and buyers of £2m and above. Among households, 71% and 68%, respectively, said a lack of supply has seriously hindered their home-buying plans, compared with 63% of the overall market.

Sell for cash or continue to hold?

For those buying rural properties during the pandemic, should they sell as soon as possible or keep holding? It may depend on the type of property they are buying and the specific use. The slowdown in price growth for high-end properties may be delayed as high-net-worth buyers are more resilient to rising mortgage rates and the cost of living.

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