SUGGESTING there is still plenty of energy left in the UK housing market, figures out yesterday morning indicate whilst houses dropped on average in September, overall the market is performing to forecasts for 2018 and that average annualised growth is still evident.
The latest house price index from one of the UK’s biggest lenders, Halifax, points to an annual rate of house price growth at 2.5 per cent in September, although prices on average dropped by 1.4 per cent on the previous month, leaving the average property price standing at £225,995.
But beneath the relatively sanguine overall picture, the disparity between regional markets is becoming ever more evident.
Brian Murphy, Head of Lending for Mortgage Advice Bureau observed that: “Although at topline level, whilst the market appears to be performing well within market expectations, the headline figure does somewhat mask what’s going on underneath.
“As has been the case since the start of 2018, a two-tier market is still very much in place, with areas such as the East and West Midlands and Yorkshire and the Humber seeing very buoyant markets with some deals being agreed within weeks, if not days.
“However, in London and its commuter belt, most discretionary movers are currently taking a ‘wait and see’ approach in terms of the current economic and political climate, leaving only those for whom a move is essential to transact. This is impacting both stock levels and prices.”
Jeremy Leaf, north London estate agent and a former RICS residential chairman, is similarly cautious and added: “After last month’s rather mixed bag, there is still no clear direction with house price growth continuing to slow.
“Sluggish transactional activity is bad for the property market but much worse for the economy. On the ground, sellers have not shrugged off Brexit concerns to put their properties on the market to sell in sufficient numbers to make a difference.
“However, buyer interest has improved in what remains more of a needs-driven market since people return from a protracted summer break.”
However, others are slightly more upbeat about yesterday’s report. Mike Scott, chief property analyst at online estate agent Yopa said of the monthly drop in average property price: “This is likely to be a short-term blip, since the annual rate of growth is still 2.5 per cent, and other housing market indicators are looking positive.
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