Housing Market Update
January is expected to be a quiet month. The property market as a whole is likely to slow down until after Brexit.
According to Rightmove, there were 19% fewer London properties which came onto the market in December 2018 compared to the year before. In Greater London, prices fell by 1.8% (which in monetary terms is £11,275) to an average of £602,996. Furthermore, the number of international buyers has reduced due to political and economic uncertainty. Data from Cluttons suggests that the average house price in prime central London fell by 4.6% over the last 12 months. Overall, the London market is likely to remain the same for some time until we have more certainty about Brexit.
Property prices fell by 1.5% (which is equivalent to a price reduction of £4,496) and is an average price of £297,527 for December 2018. Sellers are attracting buyers who are looking for a bargain but it is also a question of buyer affordability. Prices have fallen for two consecutive months towards the end of last year which is a decrease of nearly £10,000.
Despite the latter, some parts of the country are doing well. With the lack of growth in London and its commuter-belt regions, the national average annual rate of increase is +0.7%. Significantly, Wales property market has grown by +6.2%, whilst the East and West Midlands has grown by +4%. Yorkshire and Humber has grown by +5%. It is likely that 2019 will show a positive growth within the north compared to the south.
The current market is simply a buyers market. It is important that sellers should sell their properties at the correct price otherwise buyers may not be prepared to pay for it. If a property is sold at a competitive value then it will most likely attract buyers and proceed to exchange smoothly.
What also needs to be considered is that Brexit is not the only issue that is affecting property market prices across the country. There is still a question of affordability, lack of supply of homes and buy to let investments. These factors are putting pressure on houses prices. If sellers sell their property at low prices then demand will increase. Not surprisingly, sellers would be reluctant to do this.
Whether you are a first time buyer or wish to sell or buy a property, Attwells Solicitors LLP can certainty assist. For any queries please contact Harpreet Kaila on 0207 449 3132.