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. We’re taking a look at what is happening with the UK property markets during the summer months of 2018. 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.
News from the UK Property Market
June 2018 bore witness to the slowest growth in housing prices in the last five years. The most recent numbers released by Nationwide specify that annual house price growth has dropped to 2% during the month of June. This is 0.4% below May’s growth rate of 2.4%.
Conversely, the average house price in June came in at approximately £215,444, a slight increase from May, where the average property price was £213,618.
While growth has clearly slowed, if we compare the figures against Nationwide’s house price predictions for 2018, we can see that actual growth is still within their predicted range – although only just. A growth rate of 2% is at the low end of the 2-4% range but undoubtedly still within range.
As ever, changes in the market are always contingent on the state of the wider economy, which continues to be subdued. Still, experts predict house prices to grow 1% in the final half of the year.
Second Quarter Results
The annual house price in Q2 averaged £214,578, an annual percentage change of 2.2%.
London emerged as the most expensive region while the North was reported to be the least expensive. The strongest annual price change goes to the East Midlands. The weakest? London.
London – the weakest link
In the second quarter of the year, much of the country recorded a slow annual rate of house price growth.
London, however, actually saw a decline – prices in England’s capital dwindled 1.9% year-on-year last quarter, adding to the previous four quarters that the capital experienced price falls.
It should be no surprise though that even though prices have declined, property in London is still worth more than double what it was in 2007 at the peak of the market.
The rest of the UK’s prices are just 15% higher.
Remaining regions
With year-on-year prices up 4.4%, the East Midlands is clearly the best performing region across the whole of the UK.
The West Midlands is hot on their tail with growth coming in at 4.3%, and Wales is just behind at 4%.
The only other region to experience significant price growth in the second quarter is Scotland with an annual price growth of 3.1%.
Northern Ireland’s price growth of 2.1% is comparable to the UK average. England’s growth comes in last place – house prices are only up 1.3% year-on-year.
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.