British Housing market stabilizing


British Housing market stabilizing

12 Jun 2018

British Housing market

London housing prices had the biggest fall in April 2018 since 2009, while the UK average price was steady and lenders say the prices are falling in wealthier regions, whereas, the prices are still rising outside the capital. The nationwide rise in price is at the rate of 5 percent a year, at the time of Brexit vote, and this trend is expected to continue in the year 2018.

Reports by Halifax show the prices of house in London between January and March was on an average £430,749, lowest since 2015. But still, the shortage of homes is expected to aid the housing market.

Experts believe the prices show general consumer confidence but it is still rising faster as compared to wages, even when unemployment is reduced. This makes it tricky to get affordable homes for eligible buyers.

Reports on renting

  • Hamptons International Monthly Lettings Index - Rents up 1.9 percent over April 2018.

  • ARLA Property mark - April reports of the private rented sector indicate 26 percent of tenants experience a hike in rent.  This is highest since September 2017 when the landlords put rents 27 percent up, and the year-on-year hike was 24 percent in April 2017.

  • HomeLet Rental Index – UK rents 1.5 percent up over April 2018.

  • The increase in rents over the year to April 2018 was on average £918 per calendar month.

  • Rental growth has increased in East England by 14.67 percent over the past 5 years and average rent paid for properties in England outside London stands at £769, with London it stands at £1,234.

The managing director of Halifax, Russell Galley said the growing strength of the labor market where a full-time employee in March increased by 202,000, is supporting housing prices. Buyers waiting for suitable prices are now taking actions as the market meets their expectations.

Regional variations of housing prices in England

 Regional variations of housing prices in England excluding London show a rise in an overall rise in prices. The highest increase in prices has been registered in North West, East Midlands, and West Midlands regions. The East of England had the highest growth in 2017 -2018 where prices increased by 5.8 percent. The Official figures released by ONS in partnership with the Land Registry show the average price of a home in the UK in March 2018 was £224,144, which was less by approx. £500 as compared to February and £9,000 more than March 2017.

In comparison, Liverpool's average prices increased by 12.5 percent from March 2017 to 2018.  Liverpool had the strongest gains in the property market and the reasons for rising in prices in the North as compared to the South are the availability of affordable homes in the North as compared to the South. 

In comparison to London, Liverpool is one of the strongest markets in the UK now.

Housing price trends move upwards


 

The latest house price index by Halifax show house prices grew 1.5 percent in May in contrast to a decline of 3.1 percent seen in April 2018.

Prices have fallen in the past months and this attracted new buyers.

Average UK house prices from 2005 to 2018.

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