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
The mercury might be rising this summer, but the property market hasn’t matched the increase in terms of annual house price growth.
June’s house price growth slowed to 0.5%, the upward trend the market had been enjoying in the earlier part of the year virtually forgotten.
Month-on-month, there’s been a 0.1% change from May to June, a welcome shift from the prior month’s decline. While mildly encouraging, the months of slow but upward growth haven’t inspired confidence in the market to make a drastic turnaround in the latter half of the year.
June marks the seventh month in a row that annual house price growth has been less than 1%.
Luckily, average house price growth has experienced yet another increase from month to month.
The average house price in June was £216,515, an encouraging increase from May’s £214,946.
This moderate uptick continues the recent trend of price increases over the last several months after price drops in months prior. We can only hope the good fortune lasts and growth continues to pick up.
Other indicators of housing market activity
The number of property transactions and mortgages approved have stayed constant over the last few months. As usual, precisely how long this will be the case remains to be seen as consumer confidence stays low – as it has been since the start of the year – while new buyer enquiries have remained steady.
It shouldn’t be a surprise that the housing market will largely reflect the broader economy and will shift with the outcome of the contentious Brexit deal. Currently, a healthy labour market and low borrowing costs are driving consistency in housing activity, but uncertainty will help keep price growth and transaction levels stable in the near future.
Prices in London and the Southeast continue to fall
Looking across the regions, Northern Ireland has remained the strongest performing in Q2 with annual price growth of 5.2%. Wales experienced an impressive growth from 0.9% in Q1 to 4.2% in Q2. Scotland comes in behind them with a small 0.4% increase, while England reported nearly flat results year on year.
Within England, the outer Metropolitan area was the weakest performer last quarter (down 1.8%), with the outer South East hot on their heels (down 1.6%.) Unsurprisingly, London prices fell again for the eighth consecutive quarter, albeit a bit more modest drop of 0.7% compared to last quarter’s 3.8% decline.
Yorkshire and Humberside take the honour of best performing region with a 3% year-on-year rise, helping to bring the northern region’s (North, North West, Yorkshire & Humberside, East Midlands, and West Midlands) average to 2.1%. This vastly outperformed the southern regions’ (London, outer Metropolitan, outer South East, and East Anglia) 0.7% fall. These results don’t come as a surprise as they largely follow the years of figures reported in these regions across the country.
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.