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 once again took a nose dive in the final month of 2018. After a slight uptick in November, prices once again dropped in December, with Nationwide’s latest figures reporting a decline of 0.7% last month – the weakest rate since February 2013.
Continuing the downward trend, average house prices decreased slightly again in December, with prices dipping to £212,281 last month. It’s a very moderate decrease, however, from November, where the average house price was £214,044.
December’s numbers fall well short of the 2% threshold that Nationwide forecasted for the market in 2018, and narrowly miss the anticipated 1% for the year.
The housing market has been highly influenced by the stability of the number of property transactions and approved mortgages over the past few months. But experts speculate that there will be a shift and the market may dwindle thanks to weakened consumer confidence and a drop in the number of new buyer enquiries at the end of the year.
Nationwide also posits that the murky future of the economy may be contributing to the downturn, especially given the fact that employment and wage growth is strong and borrowing costs are low. Many believe that the economy’s broader performance will remain relevant to the housing market and housing prices.
Looking forward to 2019, the financial sector predicts that UK house prices will rise at a low single-digit rate.
Northern Ireland reported a price growth of up to 5.8% – the strongest across the regions in 2018, with Wales’ 4% growth the runner up. On the other end of the spectrum, Scotland’s growth only registered a 0.9% increase and England brought up the rear with a meagre 0.7%.
These results reinforced the prevailing trend seen in the last few years of the deepening north-south divide. The southern region – consisting of London, Outer Metropolitan, Outer South East, East Anglia, South West – reported only moderate growth throughout the year. On the other side of the country, the northern regions — the North, North West, East and West Midlands, and Yorkshire & Humberside — recorded steady growth in the 3% to 4% range.
It appears London and the Outer Metropolitan area contributed significantly to the continued trend of the south underperforming against the north. House prices in this region have skyrocketed; the typical home in the south costs nearly twice as much as one in the north.
Keep your eye on the property market
With all this in mind, it might be hard to stay optimistic if you’re in the market for a new home this year, but it’s important to keep an eye on the market and the changes from month to month. Be sure to check back monthly for all the updates on the UK property market.
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.