Considering the current economic situation, it is wise to stay put and upgrade your existing property rather than investing in a new property. House prices in the year 2018 saw the slowest annual growth since 2013.⭐House price growth⭐Brexit impact
The United Kingdom will be leaving the European Union after 43 years, which will have a tremendous impact on every sector. Each industry is adopting some significant changes since 23 June 2016 – the referendum. And the housing sector is not immune to it. House prices fell drastically after the referendum, and the turbulence continues as Brexit is looming. The demand for sales of houses is weakening. However, according to the Office for National Statistics, there has been a constant rise in the prices since April 2012. The momentum of growth has dropped from an annual rate of 8.2% to 0.9% in June 2019. A recent report by property site Rightmove published that Britons are on a spree of buying houses before the scheduled Brexit date. Fall in house prices brought affordability, and that is the reason home buyers are looking forward to completing deals before 31 October.
The average house price in the UK is £216,096, which was £217,663 a month ago. Experts predict that the uncertainty surrounding Brexit can make a severe influence on the housing market in the coming months. One thing is evident – if the UK leaves the EU without any transition deal, it will affect trade, financial services, and the living standards as well.
House Price Growth – Since 2013
House prices in the year 2018 saw the slowest annual growth since 2013. Micro markets of London and south of England are facing a grave setback due to Brexit. Since March 2018, the house prices in London have been falling continuously, and it has dropped to 2.9% in June 2019. Between April and June, the house prices in Northern Ireland were 3.5% higher as compared to the same timeframe of the previous year. According to the Northern Ireland Statistics and Research Agency, the average house price in Northern Ireland was £136,767 between April and June. East Midlands saw a growth rate of 3.2% while the West Midlands witnessed a 2.6% growth rate.
Annual house price growth (%), 2013 to 2018
Contains HM Land Registry data © Crown copyright and database right 2017. This data is licensed under the Open Government Licence v3.0.
House Price Predictions
Different experts of the housing industry have different takes on what will happen if the UK leaves the EU on the scheduled date. It is a bit difficult to know what the future holds after Brexit. The market is in a complete state of turmoil. Robert Gardner Chief Economist of Nationwide said that the future of the market depends on the development of the economy. A property economist at the Capital Economics Hansen Lu said that the mounting likelihood of Brexit is resulting in high buyer demand. That may lead to the growth of house prices later on. Mortgage expert of Which? David Blake said that the price drop has created a buyer’s market and potential home buyers may find good deals. Improved affordability has paved the way for buyers to secure an affordable but better deal before the UK’s departure from the bloc.
Why Improve Rather Than Move?
Considering the current economic situation, it is wise to stay put and upgrade your existing property rather than investing in a new property. Although, the slow growth in house prices means home buyers are at an advantage, still most of the potential borrowers are sitting still as they are cautious of making a decisive move in the property market. Moreover, real estate experts across the globe suggest that renovating your property may boost its overall value in the market. However, you have to invest your money where it counts. Therefore, research and make a plan – determine the areas that need upgradation – make a budget – and kick start your plan. This way, it will be easier for you to spend the money according to the budget that you have fixed. Otherwise, there are chances where you might go over the budget and overspend.
How Can LoanTube Help You?
LoanTube is a broker and not a lender. We can also help you to compare various personal loans in the United Kingdom. Our service is completely free to use. All you have to do is calculate the amount of money you need and for how long. Fill-up the application form with necessary details online so that our lenders can assess your creditworthiness and affordability to make their decision. The current situation of the housing market may make you wary of making a move. If you’re considering to renovate your property so that when the prices are up, you may resale it – then a Home Improvement Loan can help you with finances.
We aim at transparency and hence, we will explain to you everything about the offers that you find with us. Also, if you do not feel like going ahead with any of the deals we’ve found you – you can turn down the offers and we will not charge you a single penny. However, if you decide to make a deal with any of our partner lenders, then we request you to go through the Terms & Conditions of the lender thoroughly before signing on the dotted line.
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