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?
UK property prices are reported by Nationwide to have fallen again for the third consecutive month, which shows concerns about the buoyancy of the property market.
The average price for a property in the UK was £207,699 at the end of May, compared to £208,711 in April. This is considered a 0.2% monthly change.
Annually, the property price increased slowed to 2.1%, which, whilst showing a growth from 12 months previous, is the weakest growth in approximately four years.
The chart below, by Nationwide shows average UK house prices in May from 2007 to 2017.
Did the Election have an impact?
It is unlikely the snap General Election had an impact on property prices. Historically, general elections have not been known to cause any indecision with property buyers and sellers.
What is more likely to be causing the downturn is linked to real income, as with inflation rising and now overtaking wage increases, people are feeling the pinch.
Current forecasts and predictions
Expert economists at Nationwide believe that household spending is likely to slow in future months, as household budgets are under pressure.
This could add to reduced activity in the housing market. Although, there is still a shortage of available properties, and a lack of building, so this should still offer support for house prices for the rest of 2017.
All-in-all, experts suggest a 2% house price increase over 2017 would be reasonable to expect.
Keep an eye on our monthly property price updates if you are looking to buy or sell in 2017. Speak with an adviser about your financial options.
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