Home Buyers and Home Movers Due to See Lower House Pricing
Good news for those looking to move home or first time buyers. The housing market shows further cooling and that means better pricing. In addition to more competitive housing prices there are attractive mortgage deals from lenders. Even those homeowners staying put will find cheap remortgage deals on the market. A quick search online could reveal surprising opportunities for saving on a mortgage or remortgage.
The UK average house price has slowed in the last few months cooling off the fears that there was a possible housing market bubble forming in the UK. According to the latest information released by Nationwide, annual growth has slowed by 9%. There have also been signs of demand from new buyers falling in the London area. Yet, the average UK house price has reached a high in October of £189,333.
The breakdown of the data revealed that in October the UK average house price increased by 0.5% rebounding from the decline of 0.1% recorded for September. Annual growth slowed by 0.4% to 9.0%. The value increase of October over September amounted to almost £1,000 and was £27 higher than the level recorded in August which was the previous high for the average house price.
Robert Gardner, Nationwide Chief Economist, remarked, “A variety of indicators suggest that the market has lost momentum. The number of mortgages approved for house purchase in September was almost 20% below the level prevailing at the start of the year. Some forward-looking indicators, such as new buyer enquiries, suggest that activity may soften further in the near term, especially in London.
“However, broader economic indicators remain positive. The labour market has continued to improve, with the unemployment rate falling to 6% in the three months to August and mortgage rates have fallen back towards all-time lows. Indicators of consumer confidence have also remained close to recent highs.
“If the economy and the labour market remain in good shape, activity is likely to pick up in the quarters ahead providing mortgage rates do not rise sharply.”