According to data from Britain’s biggest building society Nationwide – the housing market is showing signs of slowing down before the scheduled Brexit date. Even an August buying spree amidst what is usually a sleepy summer period was not sufficient to offset this after a major drop in mortgage lending.
An increase in competition and a fall in demand contributed to the shift of the market. This is creating favorable conditions for buyers who want to invest in a buy-to-let property. The average cost of a home slipped by 0.1 percent between January and February while the jobs market remains strong. Inflation is below target and borrowing rates are low with less properties coming onto the market in recent months.
Even so, housing market activity, such as the number of property transactions and the number of mortgages approved for house purchase, has remained broadly stable in recent months.
Buyers who have turned to borrowing to buy are enjoying the influx of innovative solutions, which has provided more choice than ever before. The increasing interest in snapping up a property at a lower price has resulted in a 6% increase in homes sold over the summer period.
In the last month, the average cost of a home across Britain fell by £3,192, or one per cent, to around £305,500. London and the south of England continue to top the list of areas that have registered the biggest price drops in recent months and housing market. Understandably, they are also among the most desirable for prospective buyers.
Buyer interest is growing strong before the end of October as the outcome of Brexit remains uncertain. People are trying to get on the property ladder sooner than later and take advantage of the slightly lower asking prices.
But buyers are not the only ones demonstrating an increased activity ahead of Brexit. Sellers are also keen on off-loading properties as they are convinced it’s a good time financially to do a deal. Both buyers and sellers are eager to get the deal signed and sealed because of the next looming Brexit deadline.
All parts of the UK have seen a higher number of sales year-on-year, with three enjoying hikes of over 10 per cent.
The number of homes sold in the North East of England, the East of England and Yorkshire & the Humber surged well over 10 per cent in the last year.
The North East and Yorkshire & the Humber are among the cheapest regions in the country to buy a home, but parts of the East of England are more expensive than areas in the London commuter belt.
The South East and South West of England have seen the biggest house price drops in the last month, falling 2.1 per cent and 1.7 per cent to £401,198 and £306,935 respectively.
In Greater London, the average cost of a home has fallen by 0.1 per cent to £617,208 in the last month.
Overall, Wales and Yorkshire & the Humber were the only areas to see prices rise in the last month, seeing increases of 0.3 per cent and 0.7 per cent respectively in the last month.
The softening of marketing prices seen across the country is tempting many buyers to take action sooner rather than later.
