If you believe figures released by the Halifax in early September, you are likely to be concerned about the UK property market. The company has a price index that many individuals and organisations follow closely and they state that house prices fell in August compared to the July figures.
The Halifax stated that the average property price in August was £213,930 which was down from the £214,378 average figure stated for properties in July. Falling house prices may be unwanted by many people but there is some comfort to be taken in a drop in the size of fall. The shift in property prices between July and August represented a decline of 0.2% while the fall in property prices between June and July was 1.1%. In that regard, the Halifax figures for August represent some improvement and are not as bad as they first seemed.
There is cause for optimism in the UK property market
Things may not be as negative in the UK property market though as other sources have painted a slightly rosier image. The Nationwide also release property figures and they suggest that the outlook is brighter. While there is disagreement over how accurate the Nationwide figures are, there is a lot of emphasis placed on findings or statements released by the Royal institution of Chartered Surveyors, or Rics.
The organisation has said that the housing market is settling down in the wake of Brexit. There was understandably a drop in the property market in the wake of the EU Referendum vote but Rics now believes that the market has levelled out and that house prices will rise in the next five years. Members of Rics have predicted that UK property prices will rise aby an average of 3.3% for the next 5 years.
While some people will say that the return to normality will be related to the political state in the United Kingdom, Rics believe it is related to the shortage of homes and houses in the market. While economic and market conditions are affected by the political landscape of the country, supply and demand remain at the very heart of the UK property market.
The high level of demand for property and insufficient level of supply of homes, which is definitely the case in the Greater Manchester region, means that the property market is going to react with rising prices. Even though there is still a level of uncertainty regarding the future of Great Britain in relation to the European Union, the fact remains that there just aren’t enough homes to meet the current level of demand, and in economic terms, this is always going to lead to rising prices.
If you want to make sure that you stay in touch with all of the UK property market news, make sure you visit us on a regular basis. We’re the leading estate agents in Stockport and we’re here to help you make the right decision.
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