Other affecting factors

Other factors have also shaped the market such as tax incentives and some ministers introducing stamp duty holidays and cheap borrowing costs.

With those tax breaks over there is widespread speculation that the mortgage rates will rise.

House prices are expected to continue to rise but the gradual rise in mortgage rates will slow its momentum.

Expect to see change based on the outcome of the Bank of England’s interest rate decision in the coming months.

Expect to see house prices rise in the next few years, although at a slower rate. This could mean that first-time buyers will face another period of difficulty to buy a home – especially if the cost of borrowing increases.

The OBR has predicted house prices will go up by 8.6% this year, compared to last year. But the rate of increase will gradually slow and it is predicted that the house prices will increase by 3.2% in 2022 and decelerate further to 0.9% in 2023.