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 happening in the UK Property Market?
Annual price growth has bounced back slightly this month. After October’s abysmal performance, things turned around (a bit) in November, with Nationwide’s latest figures reporting 1.9% – a 0.3% growth month to month.
However, average house prices were down again in November; prices last month dipped to £214,044. It’s a very modest decrease from October, where the average house price was £214,534.
November falls just short of the 2% threshold that Nationwide forecasted for the market this year. The promising lift this month might mean a return to the 2% benchmark, so we’re looking forward to December’s results.
With just one more month left in 2018, we’ll keep a sharp eye on the performance of the market. Borrowing expenses and unemployment rates remain low, but the larger economy, as usual, will heavily influence the UK property market. Right now, its fate is unknown as many family’s incomes are strained, so this undoubtedly has influenced the weakened demand.
Experts predict that as long as all the right factors are in play next year, the market could see increased activity. And policymakers have already indicated that if the economy behaves, they only anticipate a slow, gradual increase in interest rates over the next few years.
Supply Boost
There’s been a significant increase in market supply recently, which has come a long way since the lows of the financial crisis.
England’s total housing stock has increased 8.5% since 2007, growing by 1.9 million dwellings.
New build construction projects completed in 2017/18 hit 195,300, just 3% shy of the numbers reported 10 years ago before stock plummeted. However, the increase in supply isn’t only down to new builds. Single-family homes are being converted into multiple family dwellings and there’s been a massive uptick in landlords repurposing their properties and creating flats from their previous design thanks to the government’s 2014 “change of use” policy regarding converting the purpose of properties. With these elements factored in, supply now only sits 0.6% below 2007/8 levels.
Areas flourishing
The South West, London, and the East of England have experienced the strongest growth in supply. These areas have also had strong house price growth, which suggests the latter influences the former.
The South West specifically, saw approximately 26,800 net new residences last year and the East Midlands added 21,400 properties to its stock.
While London’s growth wasn’t as much as the year before, with both new builds and conversions down, it still boasts relatively strong growth.
Here to help
Don’t forget 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.
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.