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 turned around again last month, with growth still in the double digits. In August, growth rose slightly from 10.5% in July to 11% in August.
Month on month, prices are up 2.1%, the second largest gain in 15 years. The average house price in August was £248,857, up from £244,229 in July.
The turnaround is a welcome surprise, as many expected that the tapering of the SDLT holiday would cause the market to slow down, but month on month, the gain was only beaten by the 2.3% rise recorded in April of this year. While the savings have dwindled, there is still money to be saved, so perhaps potential homebuyers are still trying to get last minute transactions in for properties that will qualify. Additionally, the lack of supply of homes on the market could also have contributed to the price increase.
Looking ahead
Demand, at least in the near-term will most likely remain consistent. Borrowing costs are still low and consumer confidence has bounced back. Add these conditions onto the already low supply of houses, experts predict house prices to stay fairly level. However, the end of the year is always difficult to forecast.
Once the SDLT holiday ends at the end of September, there will inevitably be reduced activity. And if unemployment rises when government schemes end, that will only exacerbate the issue. As the labour market has remained strong over the years, the impact might not ultimately be that big, and the shift in housing preferences thanks to the pandemic might be responsible for continued activity for the foreseeable future.
Paying the green premium
There’s been a focus on green initiatives recently, but whether or not that enthusiasm extends to the housing market remains to be seen.
An energy-efficient property is not the selling point some might think as Nationwide found that energy-efficiency has only a “modest” influence on house prices for owners when setting the price.
If perhaps in the future the government incentivises green homes, then it might become more of a factor, but as of right now, only the extremes – the best and the worst ratings – might sway buyers.
Check back next month
There’s never been a more important time to keep an eye on the market and the changes from month to month, so be sure to check back monthly for all the updates on the UK property market.
Figures quoted from Nationwide House Price index August 2021.
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.