10 May 2019
London House Prices
London prices have always been inflated, beyond the reach of average buyers, while, many regions in Bristol and Manchester are in a seller market where the market heat temperature is at least 35, indicating there are more buyers than sellers, while, London remains one of the top coldest regions where demand has fallen approx 16 percent since Brexit. A sharp jump in housing price was reported by Halifax in the month of April. The report states the mortgage lenders are claiming a price gain by 5 percent in 3 months to April – as compared to the same period last year where the growth was fastest since 2017 and the economists were expecting the growth to be at 4.5 percent.
The highest growth was seen in London over the increase in the volume of sales in the capital city of pricier new homes. Halifax said the supply and demand remained almost subdued and Nationwide estimated the gains to be at 0.9 percent, while, Rightmove said the online asking price fell 0.1 percent. Land Registry reported a growth of 0.6 percent. The UK home price is now at an average of £236,619, where the economists believe the markets are still remarkably strong.
London and South East prices remain volatile
The house price in London and South East were most affected by the recent trends where the Brexit unpredictability created volatility in the market. There are certain specified regions that are showing price gains, mostly due to supply shortage and increasing rents. Overall the total number of transactions has been restricted, where the year-on-year growth figures remain static, supported by the lack of properties.
RICS claims the price growth was weakest in 8 years, although, the properties sold fastest in the month of April since 2016. British lenders claim they sanctioned fewer mortgages since December 2017 in March, and consumer borrowing declined.
Overall the market has been hit by the uncertainty over Brexit extension to October 31, and the price continues to gain where the current data shows the young generation need to save for more than 10 years to be able to arrange for the house deposit. Overall in most regions, the market has been hit by unaffordability, tax changes, and buy-to-let restrictions.
Overseas buying trends
The overseas investors say the demand for good homes exists where the ability of the rich buyers to pay for the best homes subsists, which can allow the investors to buy new homes in regional cities. The regions like Manchester are offering a number of apartments and flats with the purpose of investment where one can get the highest returns due to availability of occupants. Experts suggest investors buy in northern cities for higher returns as compared to the capital city which is facing unaffordability, mostly due to the imbalance in supply and demand, that resulted in the freezing of property chains and limiting options for the first time home buyers.
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