House prices rose by over 1% last July and the average house price in the UK reached a little over £163,000. The data also shows that overall an annual price decrease of over 2% has occurred. Over the last year only, the Capital has seen an overall increase in the price of its property and it saw an overall movement up by 1.3%.
In the South West house prices rose the most in July at 2.2%. The North East has been the worst affected this year and has seen prices decrease by close to 9%. The region also saw the biggest monthly fall in house prices in July. Figures from May this year have shown that the number of sales of homes decreased by around 10%. Properties valued at over a million pounds saw the biggest fall in sales over the past year, seeing a fall of over 40%.
Obligo.co.uk is a mortgage website and Chris Gardner of the site has said, “Prices did rise in July, but the low number of sales in the month mean that this figure is not very much to go by. We can see the state of the market through this data and it clearly shows that much of the UK market, outside of London, is weak. The price of houses is staying relatively steady because of the low rates of interest on mortgages.”
Currently the rental market is doing very well as people are unable to afford mortgages with significant deposits. It is expected that soon mortgages that cover 90 or even 95% of the purchase will return and this will encourage people to move away from the rental market and buy a home.
In the last few years the biggest issue in the housing market has been the problem with the weakest link at the bottom part of the chain. A future of better mortgage deals is going to bring the property market right back up. Currently, there are many people who want to sell a home but there are just not enough buyers in the market.
The availability of mortgages will soon increase and as this happens the number of transaction taking place will also increase. Of course, the housing market will still be a reflection of the poor economy, but the better availability of market will certainly help it.
Home Fusion, a housing agency, has said, “It is good news for the housing market this week as it is experiencing some relief compared with the rest of the economy which has had seemingly endless bad news. It is true that house prices everywhere but London have fallen since last year but the market is once again beginning to show the signs of recovery.”