UK housing market house prices took a small dip last month for the first time since August of last year. The slowdown in activity and subsequent loss in momentum of house price growth does not seem to worry those close to the market, however. Demand is expected to bring house prices back up in the coming days with the selling season barreling towards us like a freight train.
The UK housing market was dealt a blow in November of last year as the standard base rate was hiked from 0.25% to 0.5%. This affected many home mortgage payment amounts as well as deals offered by the majority of lenders. For many on the fence regarding housing decisions, this made the future seem quite uncertain as Brexit negotiations continue without offering any conclusions. Many are still sitting on the fence. The Bank of England has however recently mentioned rates would be increased potentially two times this year. This is unfortunate news for many, but there is an alternate side to the metaphorical coin.
The latest figures disclosed by the Bank of England support the idea of high demand remaining for mortgage and remortgage lending. Uncertainty regarding the near future has not stopped those in search of property from obtaining it. Programmes offered by the government which assist first time buyers are continuing to feed the appetite for those looking to reach the first rung of the property ladder. Low interest rates are still an attractive draw as well.
UK housing market data has been revealed indicating the start of the year was quite resilient in terms of house price growth and first time buyer activity. Data originating from Mortgage Advice Bureau represents typical figures from the first month of the year. An increase of 0.8% in house price growth was posted compared to the same month last year. The average house price across the country now sits at £245,742. Month on month however, it is a decrease of 1.12%.
Early this month, the Bank of England voted to leave the standard base rate at its current level of 0.5%. This surprised few analysts of the UK housing market. What did open some eyes a little wider however was the central bank mentioning that rates could rise faster this year than previously thought. This sent many house owners into a faster planning mode. Those who have not remortgaged to this point are being urged to do so in order to dodge another hike in interest rates like the one which took place in November of last year.
As we speed toward selling season in the UK housing market, many terms are being used to describe the market’s current condition. Words like “cooling off” and “uncertainty” are being used at a feverish pace. Rightmove, one of the country’s largest property websites is seeing things a bit differently these days. The firm posted record numbers last year and is more than ready to welcome the summer selling season.