Monitoring the housing market is very important for many, particularly those doctors and dentists who are looking to purchase their first home or who are investing in buy-to-let properties. Our monthly Property Price Update gives you a summary of what the experts are saying.
This article does not constitute advice. Professional advice should be taken prior to acting on any part of it. Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.
What’s going on in the UK Property Market?
Annual house price growth slowed down slightly last month, dropping to 5.7% from 6.9% in February. The average house price in March was £232,134, down 0.2% from the previous month’s £231,068.
As the economy and labour market are performing better than predicted, the slowdown last month can probably be attributed to reduced demand due to the anticipated end of the stamp duty holiday, which was later extended in the 2021 Budget Statement.
With the announcements of stimulus measures in the Budget, including the extension of the furlough scheme and the stamp duty holiday, as well as the introduction of a mortgage guarantee scheme, we should hope to see growth bounce back over the next six months.
Looking ahead
What will the market look like in the long-term? It’s hard to tell. If the recovery continues to gain momentum and the housing demand increases, there will continue to be a lift in the market. However, most analysts are expecting the labour market to weaken towards the end of the year as policy support is withdrawn. It’s possible the decline then could be a sharp one.
First Quarter Round Up
While UK annual house price growth in Q1 didn’t differ greatly from Q4, the performances from the different regions of the country did.
Northern Ireland saw the highest growth with 7.4% increase, followed by Wales, Scotland, then England bringing up the rear an entire percent behind the top performer with 6.4%.
Within the nation, the North West performed the strongest with an 8.2% year on year increase, the strongest since 2005. London was the weakest performer with annual house price growth dropping to 4.8% from 6.2% in Q4.
Check back next month
There’s never been a more important time to keep an eye on the market and the changes from month to month, so be sure to check back monthly for all the updates on the UK property market.
Figures quoted from Nationwide House Price index March 2021.
Mortgages for Doctors and Dentists
Always remember to visit our site monthly for your regular update on the nation’s property prices.
If you’re planning to buy or sell property this year contact an advisor for personalised advice.
At Dental & Medical Financial Services, our experts are dedicated to helping our clients select the right mortgage deal for your needs. If you’re ready to take the first step toward home-buying, get in touch with us today.