The annual house price appreciation in the UK is still slowing, but some claim this is an indication of a long-term market recovery.

According to Zoopla's May home price report, the annual house price appreciation is still slowing, but the real estate portal claims this is an indication of a long-term market recovery.

House price inflation decreased from 4.1% in February to 3% in the year to March, and there have been 0.7% average drops over the past three months.

With the exception of Aberdeen, which reported 2.2% price declines, all UK regions and cities saw yearly price growth. Nottingham did best with a 5.5% yearly rise. Currently, the average home costs in both regions are £139,100 and £201,200, respectively.

As reported by Zoopla, the most recent data point to a "very low probability" of a significant price adjustment in the housing market. 

According to the property site, the number of houses up for sale has increased further and is currently 66% greater than it was a year ago.

Additionally, the number of new sales that have been agreed upon is 6% greater currently than it was before to Covid 2019 and is in line with the 5-year average. Scotland, the North East, and London had the largest number of agreed sales, which is indicative of the regions' more reasonable affordability levels.

London is the most expensive real estate in the UK, with an average price of £521,700, however, affordability has increased due to the capital's slow price growth over the past six years.

The survey estimates that first-time buyers will make up more than 34% of purchases in 2022, making them the largest buyer category. However, there are still severe economic restrictions for individuals climbing the first rung of the ladder.

The average rise in the previous three years of the household income needed to purchase a typical three-bed first-time buyer property is £7,530, bringing it to £55,900.

The necessary household income has increased by £4,900 to £51,000 for a two-bedroom home. First-time buyer homes with three bedrooms often have asking prices of £230,000 and £210,000, respectively.

According to Zoopla, house price growth will continue to decrease into 2023, with the year ending at -1% and low negative annual growth by summertime.

The property price index provided by Zoopla is derived from data on agreed sales, mortgage values, and sold prices.

(Forbes.com, Zoopla.co.uk)