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UK house price growth sees little change

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  • 30/08/2019
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UK house price growth sees little change
House prices in the UK saw a 0.6 per cent increase over the last year to August, the ninth month in a row that growth has been below one per cent according to the Nationwide House Price Index.

 

And the stagnation continued on a month-on-month measurement, seasonally adjusted prices remained unchanged when compared to July. 

The average price of a house in August – when not seasonally adjusted – was £216,096, down from last month’s figure of £217,663. 

Robert Gardner, Nationwide chief economist, said: “While house price growth has remained fairly stable, there have been mixed signals from the property market in recent months.  

“Surveyors report that new buyer enquiries have increased a little, though key consumer confidence indicators remain subdued. Data on the number of property transactions points to a slowdown in activity, though the number of mortgages approved for house purchase has remained broadly stable.” 

Nationwide also researched the effect proximity to a train station had on prices. It found buyers in London were willing to pay more to be near a station, with house prices rising by as much as 9.4 per cent or around £42,900 on an average property within 500m of one. Properties within one kilometre of a station are valued at an average of 4.1 per cent or about £18,800 more than the average London house.

This seems to be less of a priority in Manchester and Glasgow with buyers in Manchester willing to pay 7.8 per cent or £12,600 more to be within 500m and 3.3 per cent or £5,300 extra to be within a kilometre.

Residents in Glasgow will on average pay lower premiums for good public transport links, with house prices increasing by 3.8 per cent or £5,700 within 500m of a station and 1.7 per cent or £2,500 within a kilometre.

 

Stability amid uncertainty 

Michael Biemann, CEO of Selina Finance, said many households had positioned themselves to “weather whatever the Brexit endgame” threw at them by locking into low borrowing rates. 

However, he added: “The fundamentals of strong employment, cheap mortgages and low supply that are underpinning the property market remain strong but will be tested in the next two months. 

Kevin Roberts, director of Legal and General Mortgage Club, said: “There has been a great deal of innovation from mortgage lenders which has helped more first-time buyers to step onto the housing ladder.  

“The critical issue is that there are simply not enough homes to meet the demand from consumers, whether people buying their first property or those who want to downsize.”   

He continued to say a “concerted effort to increase housing supply across the UK” needed to be seen, as well as the government building more affordable homes to meet the needs of all borrowers. 

Guy Harrington, CEO of Glenhawk, added: “It remains a buyers’ market, with the weakening of the pound continuing to attract overseas interest. The need for more stock is as urgent as ever and the government would be foolish not to address stamp duty relief as a priority.” 

 

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