What On Earth is Going On With the Housing Market, Anyway?
You’d be forgiven for thinking UK’s housing market is a little bipolar lately, but given the state of Europe (and the rest of the world), is that really such a surprise? Today, with Article 50 triggered, the property market continues to nervously wait for Brexit negotiations. Here’s the latest on the housing market in the UK.
- The average cost of homes has fallen by 1% in June. According to Halifax, the nationwide average cost of homes has indeed fallen. As incomes fail to keep up with inflation, people are feeling financially squeezed, thus reducing demand for houses. “The drop in prices does suggest we are moving towards a ‘buyer’s market’. You may be more able to dictate the price than you might have been a few months ago,” says Adam Challis of the property group JLL. So, if you’re looking to buy - now may just be the right time.
- Annual house price inflation fell from 3.3% in May to 2.6% in June. This is the lowest year-on-year increase since May 2013, and has dropped from a recent peak of 10% in March 2016.
- But it’s not all bad news for homeowners, say economists. “Fundamentally, there are more people wanting houses than there are houses, so the market is never going to go into freefall,” says Peter Gettins of London & Country mortgages. A combination of low mortgage rents and a shortage of properties on the market will help prop up the housing marketing, so don’t panic just yet.
- And, on a brighter note, the volume of mortgage approvals rose by 0.2% between April and May, to 65,200. This is the first increase recorded since January.
Photo by Scott Webb on Unsplash.