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?
A sharp fall in house prices was predicted by Chancellor Gordon Brown following a Brexit decision. However, whilst this hasn’t materialised the effects are now starting to show as cracks appear in the woodwork.
In April, house prices fell for a second consecutive month, according to figures by Nationwide. Their monthly report showed prices declined by 0.4 percent in April, which follows on from a fall of 0.3 percent in March.
These drops indicate that homeowners could be feeling the pinch with rising inflation, low wage growth and wider economic factors.
“While monthly figures can be volatile, the recent softening in price growth may be a further indication that households are starting to react to the emerging squeeze on real incomes or to affordability pressures in key parts of the country,” Robert Gardner, Nationwide economist
This is the first time that Nationwide have reported a fall in two following months, since 2012.
Annually, prices were 2.6 percent higher in April, which shows the weakest results in approximately four years.
Current forecasts and predictions
Monthly figures can be volatile, however the recent news of a general election adds a further spanner in the works, as recent results suggest buyers are more cautious, in an already slow market.
“Recent and forthcoming tax changes (are) having a material impact on transaction levels, particularly at higher price points. Uncertainty relating to the forthcoming general election is also highlighted by some respondents as a reason for inertia,” RICS chief economist Simon Rubinsohn said.
The Royal Institution of Chartered Surveyors (RICS) reported a fall in their predictions of property price performance for the coming three months, from +4 to +11, based on their unique points system.
Despite a fall in the performance, RICS still anticipate a small rise and are generally more optimistic about the longer-term, with the majority of experts believing prices will rise again over the next 12 months.
Nationwide also predict an increase of around 2 percent over 2017 in total.
A shortage of properties on the market, and low levels of building, seem to be providing a lifeline for house prices at the moment.
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.
Follow us on Twitter and LinkedIn for regular financial and mortgage updates
?