Annual house price growth drops as property market stuck in 'limbo'

UK house price growth increased by 0.3% month-on-month in July, according to the latest Nationwide house price index.


The annual rate in house price growth was also 0.3%, down on the 0.5% witnessed in June 2019, with the average price now being £217,663.

Jonathan Samuels, CEO at Octane Capital, said: “The property market continues to suffer under the weight of Brexit and all the unknowns that has created.

“The rest of the summer and autumn will be equally subdued as we approach Halloween and a potential no-deal Brexit.

“Competitive mortgage rates, a robust jobs market and low supply are preventing prices from falling, but the market is stuck in a protracted limbo.”

Nationwide estimates that the UK housing turnover rate is around 5%, this is below the 8% rate seen prior to 2008.

Jonathan added: “Political uncertainty is clearly one reason why people aren’t moving, but the paucity of homes for sale is certainly the other major driver.” 

Tomer Aboody, director at MT Finance, stated that it was no surprise that overall sales volumes were down and added that they would stay in such a position until stamp duty was reviewed and either lowered or overhauled.

“Once this is done, the market will be re-energised, which will help increase overall sales figures and lead to the holy grail of more transactions.”

Michael Biemann, CEO at Selina Finance, claimed that while the property market was stuck in a sub-1% rut, low supply and rock-bottom mortgage rates were keeping its head above water.

“It’s hard to see the narrative changing between now and Halloween. 

“Subdued is about as exciting as things will get.

“If we leave the EU without a deal, transactions could slow up further and prices come under pressure in the short term, but that’s understandable and does not spell the end for UK bricks and mortar.

“In the long term, the UK property market will come good, but for now we are entering the biggest unknown for generations and people should buckle up for Brexit accordingly.”

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