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 continues with the upward trend that we’ve been seeing over the last few months. In November, house price growth rose to 6.5%, up from 5.8% in October, once again the highest rate since January 2015. The monthly change inched up to 0.9% last month after October’s month-on-month change of 0.8%.
The average house price in November was £229,721, up once again from the prior month’s £227,826.
UK economy
According to new data, economic recovery had already slowed down before the most recent lockdown. Economic growth slowed from 6.3% in July to 1.1% in September, despite the economy still being around 8% smaller than its pre-pandemic level. With infections on the rise, the government tightened restrictions again, undoubtedly setting up similar figures for the last couple of months.
The unemployment rate rose to 4.8% in September as a result of labour market conditions, which is still low by historic standards, but it’s still an increase from an average of 3.8% last year. The government has extended the furlough scheme to March 2021 to hopefully minimise job losses.
Property transactions
Luckily, the housing market activity has remained strong.
Property transactions in October rose to 105,600, the highest level since 2016, while mortgage approvals hit the highest level since 2007—97,500.
The outlook, however, is still uncertain. It depends on the continued effect of the pandemic, both positive and negative. It shouldn’t really come as a surprise that spending the better part of the year cooped up indoors has sparked the desire in many to make the move to greener pastures. Access to a garden or outdoor space has rocketed up the priority list for many homeowners and pushed many to take action. This, coupled with the stamp duty holiday might help boost housing market activity, at least temporarily.
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 November 2020.
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.