Monthly UK House Price Statistics – July
One of the benefits of being an estate agent is that you are never short of something to talk about, with the UK property market and what house prices are doing something we get asked about all the time. So, what has happened to the UK property market in July?
The latest Nationwide House Price Index shows that the UK market has remained steady through July with house prices showing a modest increase overall – at an annual rate house prices up from a 2.0% increase in June to 2.5% annual increase in July. The average UK property is now priced at £217,010, up from £215,444 in June 2018 and from £211,671 this time last year. This increase is slightly ahead of the forecasted 1.9%. Overall prices are expected to continue to rise, although only modestly over the year.
Here in the South West average prices are above the national average price at £243,182 in Q2 of 2018. This is still one of the regions showing the highest average values outside of London and the South East.
Commenting on the figures, Robert Gardner, Nationwide’s Chief Economist, said:
“Looking further ahead, much will depend on how broader economic conditions evolve, especially in the labour market, but also with respect to interest rates. Subdued economic activity and ongoing pressure on household budgets is likely to continue to exert a modest drag on housing market activity and house price growth this year… Overall, we continue to expect house prices to rise by around 1% over the course of 2018.”
Despite the interest rate rise on 2ndAugust, (only the 2ndrate rise in a decade), the cost of borrowing is likely to remain low throughout the remainder of 2018. The recent rate rise will only affect the 3.5 million UK mortgage holders who currently have a mortgage on a variable or tracker rate. The number of mortgages currently on variable rate tariffs is at it’s lowest level on record at around 35% – down from a high of 70% in 2001, so it is not thought that this rate rise will have a detrimental affect on the overall market, especially as many of the mortgages currently on variable rate tariffs are likely to be at the smaller end of the scale.
A note of caution however comes from Rightmove’s take on the July House Price Indexconcerning asking prices. The figures they have put together show that the number of sellers whose property is already on the market reducing their asking price is at a 7 year high, indicating perhaps a trend towards initially over optimistic valuations. As we have mentioned in this blog before, the first few weeks of marketing your property are a time when you can benefit from an initial rush of interest, for us, this really highlights the importance of a realistic valuation and asking price, especially if you want to take advantage of that initial momentum and secure a sale quickly.
So, is now a good time to buy or sell a property in the area?
Whilst it is a good idea to think about the market generally when you are thinking of buying or selling a home (no-one wants to get caught out buying high and selling low) your own personal circumstances are likely to be what forces a move and whether it’s a good time for you is likely to be the overriding factor in any decision to move. Relocation for work, changes in your relationship status, children arriving (or leaving), school catchment areas and lack of space are some of the top reasons people cite when planning a move and those things continue to happen despite the state of the property market! We would encourage you to get in touch if you are planning a move, either to register as a potential buyer or seller, even if you are just curious about the current value of your property. Our friendly staff have a wealth of experience and are happy to discuss your requirements and advise on the local market conditions at the time. To register as a buyer – visit https://www.seddons.com/contact/contact-seddons/ For further advice on selling get in touch or visit Selling with Seddons