UK House Price Growth Stalls with Recovery Occurring within Two Years

UK House Price Growth Stalls with Recovery Occurring within Two Years

The latest data regarding house price growth within the UK housing market potentially speaks volumes about what to expect in the coming months and years. According to estate agents Countrywide, house price growth has stalled, but is forecasted to begin hitting an upward stride again by the year 2018. This information does not pertain specifically to the entire country. The South and London have been pegged to see the biggest immediate dips in house prices.

The Centre for Economics and Business Research predicts the housing market will likely slowdown following Brexit, but will not reach dangerously low levels of inactivity.

Remortgage activity has slowed marginally since the historic referendum, but with the cut to interest rates, homeowners are taking advantage of the tremendous savings which are possible with a new mortgage tool. Interest rates have now been cut to 0.25% from 0.5%, which is the level they were almost permanent in for years.

Uncertainty remains a common theme within the housing market. It affects consumer confidence which then in turn affects supply and demand. This leads to house prices becoming soft and reflecting the confidence of sellers everywhere.

Countrywide economist Fionnuala Earley commented on the current state of the market, saying: "There's nothing to stop you if you're in a position to buy, because house price fluctuations are modest. But don't try to rush into a purchase before prices increase again. Buying is a longer term decision, so you need to think about your personal circumstances - can you take on a mortgage and still have a life? Are your job prospects stable or changing?"

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