Despite a subdued market, as well as continued uncertainty surrounding the impact that Brexit will have on our everyday finances in the short term, house prices in the UK rose by 1.4% during 2019 according to figures just released by one of the nation’s biggest mortgage lenders.
However, the Nationwide Building Society report highlights the continuing tough situation in London, the weakest performing region, with an annual price decline of 1.8%. While this marks the tenth quarter in row that prices have fallen in the capital, prices are still only around 5% below the all-time highs recorded in Q1 2017 and around 50% above their 2007 levels.
By contrast, house price growth returned to positive territory in the neighbouring ‘Outer Metropolitan’ region after five consecutive quarters of falls, with a modest 0.3% gain. However, the surrounding Outer South East region (which includes cities such as Brighton, Southampton and Oxford) saw a 1% annual decline.
Property investors who have been prepared to build portfolios further afield will be pleased to learn that the West Midlands was the best performing English region, with prices increasing by 2.7% over 2019. This was closely followed by the North, where prices were up 2.6%. Overall however, the annual rate of change amongst the English regions remained within a fairly narrow range of -2% to 3%.
Looking ahead, it is widely believed that economic developments will remain the key driver of housing market trends and house prices. Much will continue to depend on how quickly uncertainty about the UK’s future trading relationships lifts, as well as the outlook for global growth. Overall, Economists expect the economy to continue to expand at a modest pace in 2020, with house prices remaining broadly flat over the next twelve months, and that most households will continue to make home improvements rather than move house, thus taking full advantage of the attractive mortgage and remortgage rates, to protect their monthly outgoings and enable families to budget with confidence.
Steve Padgham, head of mortgages at FPG, said; “There are some amazing deals out there at the moment and it is no surprise we are so busy helping clients take full advantage. It should also be remembered that, as well as having the lowest rate deals at our fingertips, we can also reserve mortgages that will remain available for the next six months, which provides real peace of mind. And, if better deals emerge within that period, clients can switch to those instead – it’s a real no-brainer. Regular communication with our clients is something our company is proud to offer, and it is that personable approach that, over time, will save them and their families money.”
Why not give Steve a call today 020 8614 4782, or e-mail firstname.lastname@example.org , and see what options are available to you?