House Prices And Sales Transactions Continue To Flatten
The most recent UK House Price Index Summary from HM Land Registry has found that as the property market entered the new year, January’s figures showed signs of a subdued market.
Even though January is usually a quiet month for housing sales, the average UK property price in January, was £228,147. This is the lowest annual growth recorded since June 2013 when the average UK property had increased by 1.5%.
Although this represented a 1.7% increase from the average price in January 2018, it indicated a 0.8% reduction from the average property price in December 2018.
The market once again demonstrated a clear variance in different areas of the UK. Prices in Wales increased by 4.6% whilst London prices fell by 1.6% over the year to January 2019.
This lack of certainty has also affected the average house price paid by a first-time buyer. Although the £191,799 paid by the average FTB represents a 1.3% increase annually, the 1.1% fall from December’s average price paid is significant. Similarly, former owner occupiers are paying 0.6% less than the month previous.
The average price paid by mortgage buyers was also 0.9% lower than the month previous with cash buyers’ average price also reducing in January by 0.7%.
Despite the drop in property prices, according to the UK Property Transactions Statistics for January 2019, the 101,170 residential property transactions had increased by 1.3% from a year earlier. Between December 2018 and January 2019 transactions had also increased by 0.8%.
When the most recent sales volumes from November 2017 were compared with November 2018, English transactions had increased by 16.6%. Scotland enjoyed an annual increase of 16.4% with transactions in Wales and Northern Ireland both increasing by 4.3%. This meant that over the course of the year, UK sales volume had improved by 11.5%.
As Brexit continues to press its claws into the property market, it would seem that property transactions are increasing at a flatter rate when compared with the growth in 2018 and average house prices are going to continue struggling.
How much of an impact will Brexit have on the property market?