Nationwide Report: slowest House Price Growth since 2009
Property prices have moved at their slowest rate in nearly 3 years. House values have in fact slightly declined by 1.5% since this time last June. This is more evidence that the market is simply moving sideways rather than rising. There is however a slightly different story for London whereby there is still demand from wealthy buyers and prices have continued to increase, which will be discussed later in this article.
Nationwide report poor housing figures
These new figures from Nationwide are bearish and they blame the difficult economic situation to be at the heart of the matter. The average house price in the UK stands at just under £166,000 and the chief analyst at Nationwide believes that prices will remain very stable over the forthcoming years due to a lack of sellers and also difficult lending conditions. At You Sell Quick we believe that the lack of mortgage lending lies at the heart of the property situation. With little buyers, desperate sellers are experiencing a real lack of people walking through their doors, rather than selling at a discount in order to attract a quick sale, they are instead choosing to take their properties off the market and sit out the slump. It’s no surprise to see that mortgage lending actually declined for the first time in over 15 years. It appears that it’s the lenders who are really calling the shots and pulling the strings. If they had more favourable lending criteria for example lowered their deposit requirements this would attract more people to buy.
Banks are Raising Interest Rates
In fear of the looming European debt situation, banks have recently raised their interest rates, making it even harder for people to afford the house they want. Admittedly Interest rates have remained at record low levels since the recession began back in 2008 and one would only expect them to creep up. However, it doesn’t provide a good sentiment to those wishing to get onto the property ladder as would be buyers are now continuing to remain cautious.
London House Prices continue to rise
Different to the rest of the country and bucking the trend, new figures for the London home market for April show a rise of 5.1% compared to the same time last year. The Capital appears to be a place where house prices will always remain strong. With very little opportunity for new developments and an ever increasing population it seem like the winning recipe for any property investor or owner. Off course this average is bolstered by super high demand areas such as Chelsea and Hampstead where prices have risen more than most.
House prices around Olympic city slump
Interestingly, the properties that were built around in the newly regenerated Olympic City of East London have failed to live up to their promises of booming prices. Before the recession many investors became excited about the opportunity to by off plan in an area of London that was being rejuvenated. It appears that the area around the Olympic stadium hasn’t lived up to the hype and prices have risen in the past year but only by 2% which shows that buyers largely have little interest when compared to the Rest of London.
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