Tracking property prices is an area of interest for many doctors and dentists. Particularly this year as, with political and economic instability, concerns of a property market crash means home owners and investors are cautious with their decisions. Our monthly Property Price Update gives you a summary of what the experts in the market 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 is happening with UK property prices?
Following a few unstable months (March, April, May) where house prices were in a downward spiral, June brought a welcome upturn. Figures published by Nationwide showed that property prices in June increased by 1.1%.
The average house price for a property in the UK at the end of July was £211,671. Compared to £211,301 at the end of June. This is a modest growth of 0.3%.
However, as data by Nationwide shows, house prices are currently at their highest level in a two-year period.
The annual house price growth stands at 2.9%. This is slightly down on June, which reported an annual growth rate of 3.1%.
Are the summer months benefiting the housing market?
The period over the summer school holidays (late July and August) is traditionally a quiet time for the property market. People take time off to go away and the summer holidays take up a lot of parents’ time.
Experts are commenting that the overall lack of properties on the market is having the biggest impact on property prices. Data by RICS shows that the number of housing transactions dipped to their lowest level in eight months in June. Whilst, the number of approved mortgage applications fell its lowest for nine months.
Current forecasts and predictions
Whilst the latest figures by Nationwide do suggest the housing market is starting to show signs of improvement, it is still too early to say for definite if the housing market is entering a prolonged period of stability.
Whilst employment growth remains robust, households are feeling a tightening squeeze on their budgets as wage growth continues to fall.
Nevertheless, we could continue to see a diminutive improvement in the market, driven by the lack of supply of properties for sale.