What is on the Horizon?
If you are buying or selling a UK property now or in the near future, then it is likely you will be keeping a close track on the house price fluctuations in your area. After 15 months of growth, October is reported to have been at standstill. What now?
Stopped in it’s tracks
UK property has been on a growth train, particularly over the last couple of years. Low supply of property for sale, coupled with low interest rates, there has been much movement on the property market.
However, it seems that we are now headed for a slow-down in activity. Figures by Nationwide’s House Price Index show that after 15 months of growth, October prices were at stand-still.
The average price of property now stands at £205,904, which is the same figure as September.
In the year to October, residential property rose 4.6 percent, year-on-year. This is a fall compared to September’s year-on-year figures, which show 5.3 percent.
What is predicted for the coming months?
Although the economic outlook is uncertain, relatively low unemployment figures in a solid labour market, coupled with historically low interest rates, continues to provide good conditions for transactions to take place.
“While the economic outlook is uncertain, solid labour market conditions and historically low borrowing costs should provide support to buyer confidence.” Robert Gardner, Nationwide
Surveyors report that new buyer enquires are picking up moderately in recent months, so there could be hope on the horizon.
Some of the fall in market activity could be still due to the effect of the stamp duty surcharge on second homes, which encouraged buyers to bring forward purchases into the first quarter of the year.
However, with house price inflation exceeding that of wage increases, buyers are finding it increasingly harder to climb the housing ladder. For first-time buyers the struggles to raise a high enough deposit are still ever relevant.
BUYING?
The Autumn Statement announcement later this month could bring new hope of more affordable housing promises, which would ease demand and could cause property prices to moderate – good news if you are a buyer.
SELLING?
If you are planning on selling in the new year, then it’s good to track house prices closely and if they continue to detract then you may like to consider the timing of your plans carefully.
Moving house? Speak to Chris about your mortgage
If you would like us to undertake a review of your current mortgage deal or you are thinking of purchasing in the near future and require funding, please contact Chris for a free, no obligation appraisal.
Tel: 01403 780 770