For many looking to buy a new property, or get on the property ladder in the first place, it might seem that prices are continually rising and making many areas of Britain unattainable for a lot of buyers, but figures released by Nationwide this week have shown that overall house price growth has slowed down to 9% in October, from 9.4% in September. Property does, however, continue to rise in value, making the now average cost of a UK property £189,333, but this is the fifth month where it has “hovered around the £190,000 mark”, according to Nationwide’s results as reported in The Guardian, indicating that prices are beginning a gradual descent.
According to these results, then, there could be a small glimmer of light at the end of the tunnel for many who have found their finances incompatible with the demands of the housing market, but Nationwide’s report indicates that it has “lost momentum”. The National Association of Estate Agents have released survey results that back up Nationwide’s findings, showing that “only 4% of properties sold in September were sold for more than the original asking price, while 82% were sold for less.” There are, however, reportedly more people looking for properties in the UK, so many might find their bartering power will be lessened as demand continues to persist.
Despite the fact that the press are often quick to jump on the latest comment-worthy London property purchase, even this notoriously expensive, fast-paced property market is not exempt. Figures released by Nationwide back in May predicted a “natural correction”, in the words of their chief executive, Graham Beale. Comparatively, London house prices are 16% cheaper than they were at their peak in 2007, and many London-based estate agents are reporting more sellers than buyers, but overall prices have risen by an average of £61,100 across London over the last 12 months. Nationwide are still reporting an increase in mortgage lending of 51%, with only 2.4% of their loan book including loans of 90% of the value of the house.
The market slowing down has affected house-building across Britain, understandably, but reports are mixed. There is “a greater caution towards new development projects amid tighter mortgage lending conditions” and less confidence in terms of demand, as more people seem to be selling than buying. However, the Royal Institute of Chartered Surveyors found that the private housing and commercial sectors was growing, with over half of surveyors showing an “increase in activity”.
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