House Prices Hit New Low
With the Brexit deadline looming, the property market is continuing its downward trend as buyers continue to gain the upper-hand over sellers.
Industry experts are warning those that are hoping to sell their house fast to prepare themselves for lower-than-expected offers after the latest House Price Index was published by Nationwide this month.
The press release, which is released each month by the world’s largest building society, has shown that house prices have fallen to their lowest level since March 2018 – with the average now set at £211,966 versus £212,281 merely two months ago.
While many surveyors advise new buyers that their home can expect to see a 2% growth in value each year, the annual growth for the past 12 months has been a meagre 0.1% – the lowest growth in six years.
Although there are a number of contributing factors that could be used to explain the current stagnation within the property industry, it appears that the overriding reason for the current slump is the lack of an accurate forecast after the Brexit deadline has passed on March 29th.
“In particular, measures of consumer confidence weakened in December and surveyors reported a further fall in new buyer enquiries towards the end of 2018,” said Robert Gardner, Nationwide’s Chief Economist.
“While the number of properties coming onto the market also slowed, this doesn’t appear to have been enough to prevent a modest shift in the balance of demand and supply in favour of buyers in recent months.”
While many within the government believe that the situation will improve thanks to high employment rates, analysts have pointed out that while more people are employed, this is simply a result of the growing number of businesses utilising zero-house contracts for new employees. And as zero-hour contracts are often used to lessen the earning potential of the employee, the high employment levels are unlikely to encourage a higher number of sales in the property market.
In most areas of the country, sold house prices are likely to continue falling over the next few months, with many preparing for the worst post-Brexit.
While many homeowners are undoubtedly holding off their sale until prices show signs of improvement, there are masses of individuals who need to sell in the short-term for the sake of a new career, or other changes in their personal life, and these people are likely to find themselves losing a substantial amount of money when they do.
Luckily, there are always alternative options, such as using National Homebuyers, who are able to process a sale much faster than an estate agent, and are always happy to provide a competitive, no-obligation quote – regardless of the location or condition of the property.
Worried that you won’t find any buyers? Why not ask National Homebuyers for advice, as we buy any house. Call 08000 443 911 or request a call back to find out how much you could get for your property.