Tracking property prices is an area of interest for many doctors and dentists. Particularly this year as, with political and economic instability, concerns of a property market crash means home owners and investors are cautious with their decisions. Our monthly Property Price Update gives you a summary of what the experts in the market 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 is happening with UK property prices?
After three consecutive months of falling property prices, June has shown a renewed momentum with a 1.1% increase, essentially reversing the decline in March, April and May.
This demonstrates the volatility of the housing market as prices can clearly increase and decline momentarily.
Annually, June reported a 3.1% increase, up a whole percent since May, which could indicate longer-term stability.
Interestingly though, London is showing signs of slowing down, with only a 1.2% annual increase, the second lowest of all tracked regions in the UK.
*Figures are according to Nationwide
Does this mean things are improving?
At the moment it is not known whether the improvements to house prices in June are related to a renewed strength in the economy or not.
Gains in employment and low mortgage rates are certainly considered factors that enable property transactions to happen.
However, the sheer shortage of properties on the market could be the more important variable. According to RICS, the number of properties coming onto the market is at record low, as it is likely homeowners are choosing to stay put whilst uncertainties iron-out regarding the UK’s future trading arrangements.
Current forecasts and predictions
June has provided a renewed sense of optimism although for both potential buyers and sellers it is the case of staying tuned on current trends, as things can change rapidly when the country is going through major changes.
Regardless though, market experts are leaning towards an overall annual price increase of 2% for 2017, thanks to subdued building activity and a shortage of properties for sale, which in turn is keeping house prices buoyant due to supply and demand.
Follow us on Twitter and LinkedIn for regular financial and mortgage updates
?