Political and financial turmoil have taken their toll upon average house prices for some time… however there are signs of stability.
In May, average UK house prices increased by 0.5%. Halifax’s Managing Director said: “We saw a slight increase in house prices between April and May, but the overall message is one of stability. Despite the ongoing political and economic uncertainty, underlying conditions in the broader economy continue to underpin the housing market, particularly the twin factors of high employment and low interest rates.
“This is supported by industry-wide figures which suggest no real change in the number of homes being sold month to month, while Bank of England data show the number of mortgages being approved rose by almost 6% in April, reversing the softness seen in the previous month.
“While current conditions may help those looking to make their first move onto the property ladder, existing homeowners will doubtless be considering long-term house price growth which continues to look subdued in comparison to recent years.
“Looking ahead, we expect the current trend of stability based on high employment and low interest rates to persist over the coming months, though clearly any downturn in the wider economy would be keenly felt in the housing market.”
In addition, HMRC data show that the level of property (home) sales remains consistent. Property Reporter shows that April saw 99,420 home sales which is close to the 5 year average of 101,249 and follows a similar result in March. Plus, the number of mortgage approvals have climbed above the 12 month and five year averages.
“It’s great to see some positive, movement in the market,” says Jason Dyer of JTM Homes, independent estate agent specialising in north London sale and lettings. “It’s true that there is uncertainty in the market, however lives move on. Families grow, people need or want to downsize and others move for their careers.”
Are you thinking of moving home or letting a property? Talk to the friendly team at JTM Homes. We can give you a clear understanding of what’s happening in the property market and in north London in particular.