The UK property sales market is slowing, with out-of-reach prices pushing consumers towards rentals.
The property sales market across the UK is slowing, with consecutive month on month price falls, a pattern which hasn’t been seen since the height of the financial crisis.
The average price of a home in Britain fell 0.6% in February 2018, according to mortgage lender’s data. It followed a 0.8% drop in prices in December, and drove down annual house price growth to 2.2%, the slowest rate in six months.
Although this sounds like bad news, we believe that it provides the perfect opportunity to buy during this price correction and gain in the long term from a likely boom period when prices will begin to increase again. Interest rates also remain low and although there have been indications of rises these are unlikely to be steep in the medium term.
Particularly for those on average or modest incomes, the dream of home ownership is increasingly out of reach. Data from the ONS shows that on average, working people could expect to pay about 7.6x their annual earnings on purchasing a home in England and Wales in 2016, up, from 3.6 times earnings in 1997. The median price paid for residential property in England and Wales increased by 259% between 1997 and 2016; median individual annual earnings increased by 68% in the same time period.
Our target regions remain among the top performing in the country for price growth, helping drive capital appreciation in the properties that we will buy. Data compiled by Rightmove, using ONS data, shows the national picture.