The UK property market in 2017 continued forward with slowed but stable growth. We review the key trends and factors that influenced the market in 2017 and take a look ahead to the coming year.
Recently published figures by Nationwide show house price growth has remained in the 2-4 per cent range throughout 2017 putting the UK average cost at £211,156 in December, this marked a modest slowdown from the 4-6 per cent rates of house price growth recorded in 2016.
Residential property prices remain stable
Low mortgage rates and healthy employment growth continued to support demand in 2017, while supply constraints provided support for house prices. However, this was offset by mounting pressure on household incomes, which exerted an increasing drag on consumer confidence as the year progressed.Robert Gardner, Nationwide’s chief economist, commented, “As we’d anticipated, the housing market in 2017 followed a similar pattern to the previous year.“House price growth slowed, whilst building activity, completed sales and mortgage approvals for house purchase all remained flat. This has been driven by a squeeze on real wage growth and continuing uncertainty over the economy.“However, nationally, house prices in 2018 are likely to be supported by the on-going shortage of properties for sale, low levels of housebuilding, high employment and a continuation of low interest rates making mortgage servicing affordable in relative terms. Overall we expect annual price growth to continue in the range of 0-3 per cent at the end 2018.
House sales continue to be active
Data from the Halifax showed the annual rate of growth moderated to 2.7 per cent from November’s 3.9 per cent. Ending the year, house prices in December fell by 0.6 per cent, the first monthly decline in six months. Monthly UK home sales exceed 100,000 for the eleventh month in succession. Sales have remained above 100,000 in all months of 2017.In November they reached 104,200, the highest monthly level since March 2016. In the three months to November home sales were 7 per cent higher than in the same period a year earlier. “As we’d anticipated, the housing market in 2017 followed a similar pattern to the previous year,” Said, Russell Galley, managing director, Halifax Community Bank. “House price growth slowed, whilst building activity, completed sales and mortgage approvals for house purchase all remained flat. This has been driven by a squeeze on real wage growth and continuing uncertainty over the economy.”
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Source: Relocate Global