More research showing slowdown in house price growth
With the housing market showing signs of a slowdown, misery is being compounded by new research showing a drop of 1% in house prices since the Brexit vote.
Prices remain 8.4% higher than the same time last year, but with the Bank of England reducing interest rates to a record low of 0.25%, all indications point towards the fact that the fall in value will continue for the foreseeable future.
The fresh research follows on from several other discouraging press releases by various regulating bodies in recent weeks, leaving property selling experts to wonder exactly how the industry will move forward in the second half of the year.
For the capital, the most damning reports have come from economists at the French bank Société Générale, who project that property prices in the most expensive boroughs will fall between 30% and 50% before the market stabilises, with London-based estate agents claiming that business has indeed slowed over the last month.
While many are pointing towards the Brexit vote as the key influence on prices dropping, there are many other factors that could have contributed to the sudden downturn.
“Although it would seem the UK property market has lost steam since the vote with prices dropping 1% since last month, the summer period is always a traditionally slower time of year for residential property transactions,” said Russell Quirk, founder of online estate agent eMoov.
“With prices still up 8.4% year on year, there’s no real evidence that UK homeowners need to jump ship just yet and so I would urge them to remain calm and avoid any rash decisions.”
Of course, for many, simply sitting and waiting to sell are not options – whether they need to sell for financial reasons, or simply due to getting a job in a new city. For those in a difficult position, there are always house buying companies, who can offer competitive prices and buy homes in exchange for cash without the traditional long-winded house selling process often used by the masses.