2016 has been a year of ups and downs when it comes to property sold prices. August has seen a reassuring uptick, despite predictions of a downturn. With just a few months left to go, we're taking a look at the state of the housing market for your peace of mind. For those of you planning private house sales in the near future, here's what you need to know:
House prices and consumer confidence are on the rise
Brexit hasn't burst the housing bubble. Nationwide reported a 0.6% increase in house prices during August, bringing the national average up to £206,145. That's 5.6% higher than last August. Prices in July were also up by 5.2% year on year. The Bank of England rate cut to 0.25% is a boost to anyone with a mortgage, saving people about £15 a month on average. This could increase consumer confidence – key to keeping prices up.
Housing market has slowed
Aside from price, statistics show that the housing market has slowed down. The Bank of England reported that, during July, the number of approved mortgages was at its lowest level in 18 months. Supply is also low, with fewer properties coming onto the market. It's likely that this lack of supply is the main reason prices remain high.
A cloudy outlook
The truth is, nobody really knows what's going to happen next. Howard Archer, the chief UK economist at IHS Global Insight, believes that continued uncertainty over Brexit could reduce consumer confidence, meaning people will be less likely to make large purchases like property. He feels that prices could drop by 5% next year. Hansen Lu, a property economist at Capital Economics, agrees, saying that key economic indicators show that August's house price rise won't last.
What does this mean for sellers?
Although the outlook for Britain's property market is uncertain, if you're selling through HouseSimple.com you can afford to relax a bit. HouseSimple.com is 30% more likely to sell your home than a high street estate agent and our customers achieve 99% of their asking price on average (compared to 97% with standard estate agents).
Sound good? Contact us to arrange your free valuation visit.