What Is Happening with Property Prices?
According to the Your Move House Price Index, the average property price in England and Wales is currently £301,114. This is down from the peak of £303,472 that we saw this year in March.
Sales did fall in June by 0.2%, however, the annual growth in prices sits at 3.8%. Interestingly, there are areas in the UK where property prices remain buoyant, for example, Wales and the East of England. Also, Westminster, in London saw an annual increase of 19.7% and Peterborough had a surge of property transactions, 31% up from 2015!
There may be talk of doom and gloom in the property market, however, we need to be careful about what we read, as the property market tends to be very localised. You could experience property growth in your area, whereas a town a few miles down the road may be experiencing property stagnation.
Generally, there has been a slowdown in transactions, however, this could be due to the traditionally slow summer months. The recent tax changes for buy to let investors may have also resulted in fewer purchases for investment purposes.
The property market is cyclical and there could be a correction in house prices, which will result in house prices dipping. A reduction in house prices will mostly affect recent buyers who may have bought at the peak of the market. If you’re currently looking to buy property and are uncertain of the market, our advice would be to do your research and don’t overstretch yourself financially.
Long term, property will always go up in value. If you currently own property and intend to sit tight, then any market correction should not worry you. If you’re looking to sell your house, you should speak to a reputable agent who knows your area really well and will be able to advise you accordingly.
This is where our property team can help you. As always, our door is always open. Please contact us if you are looking to sell your house and we will ensure that your interests are well looked after.