As house prices declined in the UK, the area which has seen the strongest and largest climbs to record levels over the past years recorded the fastest decline in March. London house prices are down 1.6% in a year on year comparison. This news will be welcomed by those keen on joining the property ladder that had previously been shut out of the market.
Years of UK housing market house price hikes have led to successful estate agencies and a more valuable housing market overall, but have left many potential house buyers in its wake. Now, house prices are turning around for those seeking to possibly buy in the coming months. So far this year, house prices are down almost 2% compared with the same time last year. This is good news, especially for those looking to settle into a London flat.
The UK housing market has faced the imminent problem of a housing shortage for some time and the problem does not seem to be improving. By the year 2020, many close to the housing market estimate there will be enough of a shortage that many who are in search of a suitable residence will have difficulty finding one. Builders are working to construct housing to prevent such a dilemma, but figures continue to fall short of the goal to eradicate the problem. The mortgage industry is now approaching the government and asking for support of small house builders across the country.
Mortgage lending within the UK housing market has been a bit temperamental through the first quarter of year 2017. First time buyers are still finding it difficult to purchase a home due to high cost. A condition faced by many due to the high rate of house price growth over the last several years. Final figures from the month of March painted a picture of certain optimism, according to many close the housing market.
Political changes and other events which took place last year are still affecting the UK housing market. This year has seen a mixed bag of data so far, especially in the area of house price growth. What has been taking off like a rocket for years is now slowing down. This slowdown has been quite noticeable, but not any more than in the city of London. Only twelve months ago, house prices in the capital city were rising at a pace of 15% per year. Now, according to figures from the Office of National Statistics, home prices in London have increased only 1.5% for the year to the beginning of April.
Remortgage activity has been on a bit of an up and down trend so far this year, with the former leading the latter with the exception of the month of March. The sector, which has now earned a popular spot among most effective ways to save money, started rolling strong about half way through the year 2016. Interest rates fell to 0.25% and house owners quickly took advantage of attractive deals offered by lenders. The activity level of remortgage remains high and seems to be on a positive path moving forward, according to many close to the UK housing market.