House Price Growth Lowest In 5 Years

Property value growth is at its lowest in 5 years whilst rents are soaring across the UK, we look at what can you do to overcome falling property prices?

0
148
Leicester Train Station

House prices are rising at their slowest annual pace in five years, with growth falling from 2.5% in September to 1.5% in October, according to the latest figures from Halifax.

The figures mirror those released by mortgage lender Nationwide last week that showed growth had fallen from 2% in September to 1.6% in October, far below the 2%-3% range recorded over the previous 12 months.

Halifax’s house price index is based on homes bought with mortgages, excluding council house sales, shared ownership and help-to-buy schemes, while Nationwide’s is based on owner-occupier house purchase transactions involving a mortgage. Buy-to-let and cash deals are not counted.


Halifax found that on a monthly basis, house prices rose marginally by 0.7% in October, following two consecutive monthly falls. The average house price is now £227,869.

Russell Galley of Halifax said: “House prices continue to be supported by the fact that the supply of new homes and existing properties available for sale remains low. We see this continuing to be the case over the coming months and we remain supportive of our 0-3% forecast range.”

The volume of residential transactions has been broadly flat over the past year and is likely to remain so in the coming months, Halifax added.

Chart showing Average UK House Price. Source: The Telegraph
Chart showing Average UK House Price. Source: Nationwide

North London estate agent Jeremy Leaf said that realism was “hitting home” to many sellers who are starting to appreciate that the first offer they receive “could very well be their only one, however unpalatable it may be”.


“However, listings are increasing and four out of five sellers are said to be buyers so there are some small grounds for optimism when the Brexit fog finally clears.”

The UK housing market has slowed since the EU referendum in 2016, and many economists last year predicted growth would flatline in 2018.

Last December, the Royal Institution of Chartered Surveyors said that it expected house price growth to “grind to a halt in 2018”, amid a toxic cocktail of low levels of sales and homes on the market, as well as cautious buyers.

However, growth has remained within the 1-3% range for the past 12 months.

Russell Galley of Halifax said: “House prices continue to be supported by the fact that the supply of new homes and existing properties available for sale remains low. We see this continuing to be the case over the coming months and we remain supportive of our 0-3% forecast range.”


The volume of residential transactions has been broadly flat over the past year and is likely to remain so in the coming months, Halifax added.
North London estate agent Jeremy Leaf said that realism was “hitting home” to many sellers who are starting to appreciate that the first offer they receive “could very well be their only one, however unpalatable it may be”.

“However, listings are increasing and four out of five sellers are said to be buyers so there are some small grounds for optimism when the Brexit fog finally clears.”

The UK housing market has slowed since the EU referendum in 2016, and many economists last year predicted growth would flatline in 2018.


Last December, the Royal Institution of Chartered Surveyors said that it expected house price growth to “grind to a halt in 2018“, amid a toxic cocktail of low levels of sales and homes on the market, as well as cautious buyers.

However, growth has remained within the 1-3% range for the past 12 months. On the back of this, rents are expected to rise over the coming months so there is scope for home sellers to better utilise their properties. Instead of selling their home, they could refinance their property to put a deposit on a second home, renting out their first home to cover the mortgage on both properties. It’s a no brainer for homeowners in Leicester where Leicester rents are increasing at a faster rate than anywhere else in the country. Harry Albert Lettings & Estates will be well suited to help you become a landlord by managing your property, ensuring you can avoid having to worry about the 125+ laws you have to follow as a landlord. Give them a call today on 0116 321 4970.



Useful Links

This site uses Akismet to reduce spam. Learn how your comment data is processed.