There have been concerns for the UK housing market for some time, as official figures show that it almost came to a standstill in September. House prices have been almost static at a rise of just 0.2% compared with August, and only 0.7% over the year.  This leaves the average house value being only a little more than the average of a year ago. The average UK house price was £235,000 in August 2019, this is £3,000 higher than August 2018. On a non-seasonally adjusted basis, average house prices in the UK increased by 0.8% between July 2019 and August 2019, compared with a rise of 0.3% in average prices during the same period a year earlier, in July 2018 and August 2018. On a seasonally adjusted basis, average house prices in the UK increased by 0.6% between July 2019 and August 2019.

There is positive news, though. House price growth in Wales increased by 4.5% in the year to August 2019, up from 3.8% in July 2019, with the average house price at £168,000. House prices in Scotland increased by 1.6% in the year to August 2019, up from 1.5% in the year to July 2019, with the average house price in Scotland now £155,000. The average house price in England increased by 1.1% over the year to August 2019, up from 0.5% in the year to July 2019, with the average house price in England now £251,000. Northern Ireland house prices increased by 3.5% over the year to Quarter 2 (Apr to June) 2019. Northern Ireland, as always seems to be the case, remains the cheapest UK country to purchase a property in, with the average house price at £137,000.

So, why has the housing market seemingly ground to a halt at a national level, and is there anything on the horizon that might help kick-start the market again?

The Office of National Statistics (ONS) has stated that the lowest annual growth was in London, where prices fell by 1.4% over the year to August 2019, followed by the South East where prices fell by 0.6% over the year. Many commentators are suggesting that this sluggishness in the market is as a direct result of the continued Brexit debate, and the uncertainty surrounding a leave date. That sluggishness is leading to a pent-up demand in the market that is ready to release once Brexit is clarified. It is expected by many commentators that we’ll again see a kick start in the market once the certainty of how Brexit is going to play out is resolved.

Iain McKenzie, chief executive of The Guild of Property Professionals has said “when the extension of Brexit was announced there was a spike in activity in the market, which again reiterates the fact that it is uncertainty holding buyers back rather than a lack of interest.”

It is the view of many that the current issues with Brexit is holding many buyers back from completing purchases, but these are likely to be back on track one the uncertainty has been cleared up. Whilst it may seem that the market is subdued, many homeowners have perhaps been holding back on home purchases, waiting for the market to pick up, saving cash and building bigger deposits, in preparation home moves in 2020.

If you are looking for a first time mortgage, or to secure a new mortgage deal, come and talk to us here at Grange Mortgages, and see what we can do for you.