In the UK property market update video for August 2018, Richard Donnell, the Insight Director at Hometrack, discusses current trends in the UK housing market. Topics covered this month include:
1. The latest trends in house prices across UK cities
House price growth has moderated slightly to 4.2% year on year, which is largely due to a slight moderation in growth in larger regional cities and also London, where house prices are flat, which is acting as a drag on the headline rate of growth.
2. Growth rates in London
House prices in London are expected to remain broadly flat for the next few years, as the capital goes through a ‘re-pricing’ period, where current prices begin to realign with what buyers are prepared to spend.
3. The impact of the increase in interest rates announced by the Bank of England
Mortgage rates remain low by historic standards, and two thirds of outstanding mortgages today are at fixed rates. So it will take some time for any impact on interest and mortgage rates to feed through into affordability.
4. The impact the global financial crisis of 2008 has had over the last decade
There’s been a big divergence in performance in house prices since 2008. Some markets are flat or even below where they were a decade ago, and others are 70% higher.