30 October 2014, Recent figures on household borrowing and active buyer enquiries both indicate that the UK housing market is cooling.
Indeed, Land Registry figures released yesterday highlighted a 0.2% fall in monthly house prices, with reductions recorded in seven out of the ten UK regions, including London and the South East which saw values drop by 0.7% and 0.2% in October respectively.
That said house prices have risen by 7.2% over the last year to October, with London witnessing an impressive 18.4% increase.
Statistics within Carter Jonas indicate that momentum has slowed since September and the appetite for purchasers to progress has reduced.
Prices in certain markets, have surpassed their 2007 peak and have risen beyond a level at which interest could be sustained, although where properties come to the market at a fair market value, there is still appetite to purchase. Interested parties remain lukewarm and continue to monitor the market carefully, particularly within the prime markets of Oxford, Marlborough, Cambridge, Bath and Harrogate. No evidence of prices actually falling is apparent across our network of 31 residential offices throughout the UK.
The principal concern regarding the Spring market remains the limited volume of stock and while the imminent likelihood of rising interest rate and the General Election will dampen enthusiasm and activity levels, we anticipate achieved house prices to hold firm rather than dramatically fall over the next six months.
It’s a case of holding your nerve rather than believing the hype.