In the UK property market update video for June 2018, Richard Donnell, the Insight Director at Hometrack, discusses current trends in the UK housing market. Topics covered this month include:
1.The key themes in the UK property market from the first 6 months of this year
UK house prices have grown by 4% over the last 12 months; two years ago, they were rising at twice the current rate. However, there’s a great deal of disparity between national and regional house price growth; many of the fastest growing markets are outside of southern England in places like Edinburgh and Birmingham. In London, house price growth is flat with moderate price falls in central areas.
2. Current trends in housing sales and the outlook for the rest of the year
House prices growth is expected to remain at 4%, which is modest, yet still ahead of the rate of growth in average earnings. The price gap between London and the rest of the UK is beginning to close, with regions outside of the south East set to continue to see above average levels of growth.
3. The impact that affordability pressures in London are having on regional markets
London attracts younger workers and students, who rent properties in the capital during their twenties, then look to shift from renting to buying in their thirties. Due to high levels of unaffordability in London, there’s been a massive increase in the movement of people in this age bracket moving out of the city, pushing demand for properties in regional cities like Manchester and Birmingham up.