Increased property prices hint at improving market
Research from one of the country’s leading mortgage lenders, Nationwide, shows property prices rose by 0.5% in November, the biggest increase since July 2018. According to the building society, the average price of a house in the UK is now £215,734. Despite the perhaps slightly better than expected rise, the overall property market remains fairly stagnant, with overall prices increasing just 0.8% over the year. Indeed, Nationwide said economic uncertainty and Brexit has taken its toll on the market.
Improving property market despite uncertainty
Jonathan Samuels, chief executive of leading mortgage lender Octane Capital, explains further, saying "the property market is hardly all guns-blazing but neither has it given up the ghost. Ultra-low borrowing rates and a deep-seated boredom around Brexit mean transaction levels continue to tick over. People have said enough is enough and are getting on with their lives, something that really shone through in November."
With a general election just around the corner, some think this period of uncertainty affects the property market as buyers hold off making a move until the government has settled in. However, according to Nationwide, electoral periods don’t affect the market. Indeed, Nationwide’s chief economist, Robert Gardner, believes "Rightly or wrongly, for most home buyers, elections are not foremost in their minds while buying or selling their home."
Halifax also reports higher property prices
Halifax, another of the UK’s largest lenders, also saw a rise in house prices last month. Their figure is a more optimistic 1% increase from October to November and they say the average price of a property is now £234,625. Russell Galley, managing director of Halifax, believes the rise is largely due to lower mortgage rates and higher competition for properties. He says, "while a degree of uncertainty remains evident, it’s also clear that buyers and sellers are responding to factors such as improved mortgage affordability and the limited supply of available properties.
“It is these issues which we believe will continue to underpin the resilience evident in the market for most of 2019. Over the medium term we expect the emerging trend of modest gains to continue into next year.”
If you’re looking to sell your home or are searching for your dream property, contact the expert estate agents at Chimneypots today on 01489 584298. Chimneypots has years of experience both selling properties across the Hampshire and Dorset and helping people find their next home.