Since the Referendum there has been much speculation about house prices and just after the vote there was a temporary dip while the market adjusted to the news. However, since June 2016 prices have managed to stay largely afloat and consistent, until January, when prices were reported to have fallen 0.9%. What is the outlook now for 2017?
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.
House price trends since the EU Referendum
House prices were expected to tumble following the EU Referendum’s Brexit result. However, they only really suffered a small downturn in August 16 as a result of the UK population considering their options.
In December, there was in fact a surge of 1.6 percent month on month, which wasn’t expected at all by economists.
Low demand of available housing has been core to keeping house prices at the least consistent, but in most recent months still growing.
Last month though, house prices fell for the first time since August, down 0.9 percent month on month.
However, many market experts believe that January is generally a sluggish month for house sales, whist people recover from Christmas.
Year on year
Year on year, Halifax reported property price rose by 5.7% in January, which was slower than the annual growth recorded in December 2016 of 6.5%.
Nationwide reported last month, that house prices rose at their slowest annual rate in over a year.
What is the outlook for UK property prices?
The average house valuation is now £220,260.
In general, there continues to be a clouded view on the future of UK house prices.
“The outlook for the housing market remains clouded, reflecting the uncertainty surrounding economic prospects more broadly,” Robert Gardner, Nationwide economist
Halifax, as well as many other reputable financial institutions, believe that house prices continue to be sustainable due to a shortage of properties for sale, combined with not enough new building.
However, weaker economic growth and worries about rising inflation and how this will affect general living costs as well as stricter lending criteria with a harsher focus on affordability, is dampening further growth as people air on the side of caution.
January though could well have been a seasonal downturn, so it is important to keep up-to-date with recent news if you are planning to sell your home in 2017.
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