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?
Annual house price growth reached a five year high in October. Surpassing September’s impressive 5%, it hit 5.8%, the highest rate since January 2015. House prices also rose month-on-month by 0.8%, following on from September’s 0.9%, hopefully, the start of an upward trend. The average house price in October was £227,826, up once again from the prior month’s £226,129.
Despite a small spike in recovery, it appears momentum has been lost. Economic growth slowed to 2.1% in August, a steep decline from July’s 6.4% even after government schemes attempted to inject life into the economy.
With the unemployment rate rising to 4.5%, labour market conditions have also weakened. It’s not exactly the lowest it’s ever been but it is higher than 2019’s 3.8% average.
It doesn’t seem to be deterring the housing market as there has still been activity; mortgage approvals for home purchases hit 91,500 in September, the highest level since 2007.
The outlook for the market is dependent on several factors, COVID-19 being the biggest one as the country is set to go back into lockdown shortly. How we fare and what new measures are put in place to help recovery will make all the difference. And the stamp duty holiday should help drive activity for the time being.
Experts aren’t predicting activity to grow over the next few quarters and some are even warning against sharp declines after the stamp duty holiday deadline in March.
Behavioural shifts boost activity
People have been reassessing their housing needs and preferences — the idea either springing up because of the pandemic or intensifying after all the time spent indoors. A Nationwide report states that 10% of people polled were already in the process of moving because of their experiences during the pandemic and a further 18% are considering a move for the same reason.
Others are looking to improve their properties, but the features those upgrading their current home are looking for are likely things home-buyers are looking for as well. Needing additional space was obviously the main driver, but interestingly enough, energy efficiency actually received a lot of responses as well. Something to consider when searching for new homes or preparing your current one for sale.
Stay in the know
Check back monthly for our regular update on the nation’s property prices.
If you’re planning to buy or sell property this year, contact an adviser 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.
Figures quoted from Nationwide House Price index October 2020.
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.