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.
News from the UK Property Market
The heat is on for the property market in terms of annual house price growth – but certainly not the good kind of heat. July’s house price growth slowed to 0.3%, suffering another dip after last month’s 0.5% growth.
Month on month, there’s been a 0.3% increase from June to July, continuing the prior month’s modest increase. While one can’t argue against growth, however meagre it might be, experts in the field aren’t holding out hope for a sudden surge in house price growth after the way the market has performed so far this year.
July marks the eighth month in a row that annual house price growth has been less than 1%.
Luckily, average house prices have experienced yet another increase from month to month. The average house price in July was £217,663, a promising increase from June’s £216,515. This slight increase continues the recent trend of price increases over the last several months after price drops in months prior. All we can do is cross our fingers that the trend continues and growth continues to increase each month.
The usual indicators of housing market activity such as the number of property transactions and mortgages approved have stayed constant over the last few months.
However, surveyors are reporting that new buyer enquiries are enjoying a slight increase, although consumer confidence hasn’t experienced the same lift. The number of mortgages being approved remains stable while the number of property transactions has decreased.
Moving forward, the housing market will largely reflect the broader economy but for the moment, a healthy labour market and low borrowing costs are driving the stability of the activity.
People are staying put
After a review of housing market activity over the last decade or so, findings suggest the number of people moving house has remained steady at about 5% (of the total number of homes in the country) – a rate that, while higher than the lows of ten years ago, still falls well below the 8% reported before the financial crisis.
While first-time buyer purchases have recovered nicely, thanks in large part to government schemes, improved credit availability, and low borrowing rates that encourage people to get on the property ladder, it seems once people own their first home, they aren’t moving up the ladder by moving house.
This could be down to the fact that there is a lack of desirable properties on the market for people to move into which creates a domino effect. People aren’t putting their homes up for sale in order to move on, so other homeowners follow the trend and hold on to their own properties as well.
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.