First-time buyers, grab a deal
October saw a standstill in house prices from September. In November, there has been a small increase in house prices month-on-month, however, annual price growth slowed further. For buyers December and the new year could be the chance to grab a deal.
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.
The average property price in the UK
The average price of property in the UK has increased a notch since last month; up 0.1 percent to an average of £205,947. Last month, the average house price was £205,904.
However, the annual house price growth, as tracked by Nationwide House Price Index, fell from 4.6 percent in October, to 4.4 percent in November.
This shows we are experiencing a slowing of house price inflation, which has been on a roll for several years now. However, experts say that one flat month shouldn’t be a cause for concern.
“The fact that house price growth remained relatively flat last month should not be viewed as a cause for concern for the market” Adrian Gill, Your Move
The key factors affecting property prices
SELLING?
Low borrowing costs and a strong labour market are contributing to keeping demand afloat.
Most forecasters expect the economy to weaken further in the following few quarters, however with only modest housing construction, homeowners could be in the fortunate position to retain their current property value in the short-term.
The current lack of homes for sale is a key driving factor in keeping demand high. So, whilst house price growth is slowing, prices are not falling, as yet.
“The relatively low number of homes on the market and modest rates of housing construction are likely to keep the demand/supply balance fairly tight in the quarters ahead, even if economic conditions weaken, as most forecasters expect.” Robert Gardner, Nationwide
BUYING?
This period of calm could present an opportunity for first-time buyers to get onto the property ladder, without the risk of further house price inflation during the search & negotiation process.
With low mortgage rates, owning a home can be infinitely more cost-effective than renting. That is, if you can raise the money for the deposit.
However, if you are poised to take the next step, now could be a good time to grab a deal.
“With so many lenders now offering record low mortgage rates, there has never been a better time to buy.” Adrian Gill, Your Move
Moving house? Speak to Chris about your mortgage
If you would like us to undertake a review of your current mortgage deal or you are thinking of purchasing in the near future and require funding, please contact Chris for a free, no obligation appraisal.
Tel: 01403 780 770