The North seeing a mini property boom!

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The latest Nationwide House Price Index shows an annual increase of 2.1% in house prices, with a monthly decline of -0.2%.

Annual house price growth remained subdued in March

• UK annual house price growth steady at 2.1%

• London again weakest performing region, with house prices down 1% year-on-year

Commenting on the figures, Robert Gardner, Nationwide's Chief Economist, said:

“UK house price growth remained broadly stable in March at 2.1%, little changed from the 2.2% recorded the previous month. House prices fell by 0.2% over the month, after taking account of seasonal factors.

“On the surface, the relatively subdued pace of house price growth appears at odds with recent healthy rates of employment growth, a modest pick-up in wage growth and historically low borrowing costs. However, consumer confidence has remained subdued, due to the ongoing squeeze on household finances as wage growth continues to lag behind increases in the cost of living".



Please find below comment from property expert and Emoov CEO, Russell Quirk. 


Founder and CEO of Emoov.co.uk, Russell Quirk, commented: 


"Where house price growth is concerned, we seem to currently be in a state of property market limbo and this will no doubt last until our departure from the EU is finalised, if not a little while longer.

While we aren't seeing the more positive upward growth trends UK homeowners have come to expect of property values over the last few years, the good news is that we still haven't seen the disastrous market crash that many have prophesied, and it is very unlikely that we will. 

The Easter weekend tends to act as the gateway to the spring selling season and traditionally brings an influx of market activity. While buyer demand remains somewhat subdued, market performance over the coming months will be the real indicator as to the wider health of the UK property market."

 

Sam Mitchell, CEO online estate agents HouseSimple.com, comments:

"While the UK picture shows price growth is broadly flat, in fact we are seeing two very distinct markets going in opposite directions.

"The north, buoyed by favourable stamp duty conditions and strong employment is seeing a mini boom. While, the south, which hasn't enjoyed the same stamp duty boost, is showing signs of a prolonged slowdown as affordability remains an issue.

"The impact of the stamp duty freeze could well see the north-south divide widen over the coming months. 

"The market for properties below £500k is going from strength-to-strength, with a lot of competition for entry level properties, particularly one and two beds. This plays nicely into the hands of the north, particularly urban conurbations such as Manchester.  

"The top end of the market - properties at £1m plus - is suffering from punitive stamp duty thresholds, and is unlikely to recover in the near term until the Brexit picture becomes a lot clearer.

"London is feeling it harder than most, with very few properites below the 0% stamp duty threshold and property supply constraints an ongoing concern.

"What this does mean for committed sellers is that it's actually a very good time to get your property on the market, as there's less competition with many people only selling out of necessity.

"Demand is healthy, buyers have the appetite, and we're conducting a lot of viewings, but they are extremely price sensitive and want to negotiate. The successful sellers right now are the ones who are willing to enter into a negotiation with buyers."

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