The most recent figures published by the Office for National Statistics ( July 2019 ) show that average house prices in the UK only increased by 1.2% in the year to May 2019. House price growth has generally slowed in the UK over the past three years and most of this drop is due to house prices slowing in the south and east of England. As you can see from the chart below, broadly house price growth across the UK has being slowing since mid 2016 and 2019 is bringing a further slow decline.
If you own a home in London (housing market London), this is not good news particularly if you live in one of the worst affected areas where there was a decline of between 5.6% and 9.6% – Barnet, City of London, Southwark and Kingston upon Thames.
It’s easy to see the impact of pre-Brexit uncertainty as people are putting off investment decisions in certain areas. This also explains why London is having the most significant fall in house prices. For a lot of people purchasing a home is no longer a priority as they are worried about their jobs and finances generally post-Brexit. With property prices still out of reach in many areas people simply don’t have the money to put into property and are choosing to rent instead.
We await the release of the updated UK House Price Index next week with interest as to whether there has been a further decline in house prices as a no-deal Brexit is becoming increasingly likely.
What is clear is that those who cannot sit and wait until the housing market improves across the UK are likely to need specialist advice, particularly if their home is in negative equity. There simply aren’t enough buyers to support the market, so even if someone is willing to sell, it’s less likely that a buyer is willing to take the property off their hands. This lack of liquidity will mainly affect those who simply need to sell/move for family or personal reasons or those who can no longer afford to pay their mortgage long term.
If you are in a difficult position with your property and mortgage there is help available for both Landlords and Homeowners. Our team at Negative Equity UK (part of the CD Fairfield capital group) are here to help you – just give us a call on 0161 660 4403 or fill out our online contact form below.
Authorised and regulated by the Financial Conduct Authority we have all of the negative equity solutions available under one roof. The initial consultation is free; you can have a no obligation, confidential chat with a highly trained and understanding adviser to talk through your situation and give you an overview of the options that may apply to you. We have helped thousands of people to sort out their negative equity position, either by supporting them to re-negotiate their existing mortgage and stay in their home, or to sell their property and resolve any negative equity in a managed and fair way.
For those that need to sell their property; we have supported 100’s of people, negotiating a very significant portion of the negative equity to be written off by the lender (average write off is over 75% of the negative equity + over £70,000,000 in total so far). You can then move forward without the burden of debt from a property you are no longer living in. If you are no longer able to sit and wait for the property market to improve, there are options available – speak to us now on 0161 660 4403 to find out how we can help.