UK housing market continues to weaken
A new blog report by the Office of National Statistics has delivered further bad news regarding the state of the UK property market as a result of various legislative changes and Brexit insecurity.
The property market has continued its woeful performance this month with news that house price growth in the capital has hit its lowest level since 2009 – with the rest of the UK following suit to a lesser degree.
With sustained over-inflated property values over the past 20 years, London appears to be bearing the brunt of the lack of fresh investment from both British and foreign buyers as tax changes and stamp duty hikes make buy-to-let mortgages a less attractive proposition. Buyers are also holding back from purchasing in the present due to fears of going into negative equity once the UK leaves the EU in March 2019.
The latest report from The Office of National Statistics has added to the misery felt by Theresa May’s Tory government, which is already heavily divided over the ongoing negotiations regarding future trade with the EU bloc and the possibility of a NI customs border.
For those in the capital who hope to sell their house fast in the near future, this news will undoubtedly force them to reconsider their decision until the market once again becomes stable – unless of course they choose to use the services of house buying companies who are willing to purchase any home, regardless of location or condition, in as little as two weeks – before sold property prices fall even further.
“London is paying a painfully high price for its stellar run of price rises, and a correction is now under way in several parts of the capital,” said Jonathan Hopper, managing director of Garrington Property Finders.
“While London contains a tapestry of micromarkets – variously going up, down and sideways – the headline figure is a wake-up call for both sellers and buyers.”
Similar to the capital, many other UK regions have also seen a slower increase in housing values, yet these prices continue to be outside the realms of affordability for many potential first-time buyers. But with a lack of homes coming onto the market, there’s very little competitive motivation for vendors to lower their asking prices.
Property experts, however, have warned sellers to be more realistic when setting their asking prices if they wish to achieve a sale in the short-term, as the country is unlikely to see an increase in market activity until both the UK’s position on Brexit and the unrelenting political turmoil in Westminster has been resolved.
Hoping to sell your house? 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.