The UK property market continues at a steady pace, very much in line with previous months with only a slight movement on some key metrics, consistent with seasonal expectations, according to MAB data. The data is based on mortgage applications.
Many had expected to see a marked dip in both activity and prices across the board due to a combination of anticipated consumer concern with regards to the current political climate, as well as economic factors such as slow wage growth hampering affordability, said the broker.
“We are still seeing a healthy number of those purchasing due to life circumstances, for example moving home due to work or family factors, together with a noticeable upswing in FTBs taking advantage of the fact that fewer landlords are adding to their portfolios at the current time, meaning that there is less competition for entry level stock in many areas of the country,” said the report.
This has led to the volume of residential transactions remaining steady for June, July and August, at over one hundred thousand transactions per month.
However the bureau noted that it was normal to see a “slight cooling” in house prices over the summer months, as this was typically a quieter period with properties taking longer to sell. Therefore vendors tended to price slightly more competitively in order to secure a buyer.
“However, in some areas of the UK, an upwards movement in pricing has been observed, supporting the fact that prices remain robust in a number of towns and cities,” said MAB.
It added that: “It’s likely that as we move into the start of the autumn the current constant picture will remain, perhaps assisted by those who are now looking to ensure that they are moved into their new home and settled before Christmas.”
Other key findings included a marginal change in remortgage loan size, which increased by 0.6% month-on-month; and that the average FTB property purchase price decreased slightly to £208,994 in August 17, from £209,864 in July 17.
The National Mortgage Index is based on monthly applications data compiled from more than 1,000 advisers across the UK.