House Prices See Largest Monthly Drop in Eight Years
Along with house sales, the growth of house prices has fallen in the UK housing market. The month of April continued a trend which started at the beginning of the year and is signaling a cooling off period for the market, according to many close the market. Original loan lending as well as fewer houses being placed on the market for sale is combining for an April which has posted a lower average house price. The average house price across the country now sits at £220,962, according to Halifax.
One bright spot which continues to improve as the year progresses is the labour market. Overall, unemployment remains an area which is falling whilst wage growth is starting to increase. This helps residents by making it possible to afford more in terms of housing, instead of placing all income into paying outgoings.
House price growth fell at a rate not seen since the year 2010, according to Halifax. The 3.1% drop in growth is disappointing to many who are looking forward to entering the most important season of the entire year in regard to house sales. The start of the selling season within the UK housing market starts soon.
Remortgage demand remains strong as home owners are not hesitating to obtain a potentially lower interest rate. This makes it possible to lower the monthly mortgage payment which can be certainly stressful and quite a burden each month. There is also access to cash through the process which makes paying off old debt possible as well as possibly starting a home renovation.