12 Jul House Prices Finally Bucked their Election Influenced Downward Trend
At the end of last month, the BBC and various other news outlets reported the latest Halifax House Price Index showed an easing in the growth of house prices across the UK as a whole, with year-on-year house price increases dropping from 3.8% in April 2017 to 3.3% in May 2017.
However, this month, the latest Halifax House Price Index showed that during the month of June, house prices fell by -1%, down -0.1% over the last quarter.
House prices remained stable over the past three months, though overall, house prices from April to June were marginally lower than in the previous three months. The annual rate of growth has fallen to 2.6%, the lowest rate recorded since May 2013. According to Martin Ellis the Housing Economist at Halifax, “Although employment levels continue to rise, household finances face increasing pressure as consumer prices grow faster than wages. This, combined the new stamp duty on buy to let and second homes in 2016, appears to have weakened housing demand in recent months.”
UK House Prices
June 2017 (seasonally adjusted)
Due to the recent general election, the decrease in house prices announced in June was largely expected as many sellers/buyers had held off until some durability and integrity of the government regime had returned to the UK.
Despite the result of the election being rather unexpected and less than pleasing, there is still a degree of uncertainty and lack of confidence surrounding the future government. Figures previously released by Nationwide suggest that rather than hang off for the final outcome, both home buyers and sellers have become weary with the current political display and pushed on with their property transaction – and it is probable that the data that Halifax release at the end of July will confirm this.
Despite a slight cool in the market, house prices are still up 2.6% year on year with interest rates remaining at a record low. With a refreshing level of buyer demand returning to the market, house price values are envisaged to remain at this level for the foreseeable future.
“Contrasting figures from Halifax after Nationwide reported signs of a pulse returning to the UK property market, but given both sets of numbers, it would seem reports of a market demise have clearly been exaggerated.
Despite the recent claims the market is due to see a notable crash with prices falling by as much as 40%, this remains very unlikely. The market is not dead or running on the life support of easily obtained credit and has suffered more of a grazed knee than a fatal injury.
A momentary blip is certainly not substantial enough to label as a trend and those that have, are doing so prematurely. Resilient levels of buyer demand, heightened by a paltry supply of stock and coupled with historically low interest rates will continue to fuel house price growth in the medium and long term.” Russell Quirk, Founder & CEO, eMoov.co.uk.
If you need help with buying or selling your home, the first step is instructing a Home Report to be carried out. The Home Report Company will provide a Home Report at a time to suit you, with early morning, evening and weekend appointments across Scotland. Give us a call on 0131 608 0175 or email us at firstname.lastname@example.org