As prices fall in August has the housing bubble burst?
The Halifax released their latest house price index this week so we take a look at the housing market and ask whether the bubble has burst. We also take a look around the country and see what you can buy you for the average UK property price in all four corners of the land.
House prices for August down 0.2% but remain up 0.7% for the quarter
It is now 11 weeks since the momentous decision of the UK public to leave the EU in June’s “Brexit” referendum and Halifax have released their latest house price index. The figures show that in the latest quarter house price rises have eased. Prices in the three months to August were 6.9% higher than the same 3 months of 2015 but just 0.7% higher than the three preceding months and dropped by 0.2% month on month.
It is probably still too early to say whether the bubble has burst, but it is possible to say that the uncertainty of the future has likely tempered the market over the summer months. There are doubts over the future of the economy and with it there has been a drop in confidence in the UK housing market. However, some savvy investors have taken advantage of the weaker pound to bag a bargain and I am sure that more will do so in the near future.
Other things to note from the report are that home sales, instructions to sell and mortgage approvals all fell in July. Although there is a seasonal expectation for a summer slowdown, as people take holidays and look after their children, it appears that stamp duty changes earlier in the year have had an impact on the housing market and softened demand.
With the average house price in the UK now standing at £213,930 we take a look at what you can get for the money around the country. In Holsworthy, Devon, you can buy a characterful 2 bedroom lodge house marketed by Bond Oxborough Phillips with a guide price of £199,000. Meanwhile, in South Ayrshire, Galloway and Ayrshire Properties are offering a 4 bedroom detached house set in a substantial landscaped garden for offers over £204,500. In London you would need to accept something more modest such as a studio apartment in Beckton advertised at £204,999 by Foxtons, while in Oxford Chamberlain Evans are marketing this first floor 1 bedroom flat at £215,000.
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