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?
Last month, for the first time in six months, annual house price growth slowed to 6.4% after reaching a six year high of 7.3% in December.
The average house price in January was £229,748, down 0.3% from the prior month’s £230,920. The slowdown is most likely the result of the reduced demand as the end of the stamp duty holiday period approaches.
The good news is that the total number of mortgages approved for house purchases last year surpassed 2019’s total. In fact, house price growth was at a six year high at the end of 2020 despite the economy’s 10% reduction from the beginning of the year and higher rate of unemployment.
The impact of coronavirus
Usually, there’s a direct effect of broader economic trends on the housing market, but thanks to the coronavirus, the relationship has changed. The pandemic pushed many people to seek a change of scenery, away from densely populated areas and property types despite an overall economic slowdown and an uncertain future.
Looking ahead
Shifts in housing preferences will likely continue to play a role in market performance. But activity is slowing down now that we’re approaching the deadline to take advantage of the stamp duty holiday. If it ends on time and labour market conditions continue to weaken as many experts predict, housing market activity will probably slow over the next few months.
Home ownership on the rise
According to the Ministry of Housing, Communities & Local Government (MHCLG) latest English Housing Survey, there was a slight increase in the home ownership rate in 2020. The rate rose to 64.6%, up from 63.8% in 2019, making it the third year in a row that home ownership rate has increased. Despite this upward trend, the rate has yet to come close to the 2003 peak of 70.9%.
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 January 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.