UK house price growth continues to fall in June – reaching it’s weakest level since February according to the latest Nationwide House Price Index. Price growth was marginally higher at only 50bps compared to the same period las year as uncertainty continues to drag on performance in the sector.
“The demand for buying properties over the last three months compared to the same time last year has slightly decreased” said one property manager at a UK wide Estate Agent told us this month.
“This is due to market uncertainties and the uncertain government situation and its unknown impacts. However properties are still sold of course, due to housing shortages just the turnover was quicker during this time last year. The average selling price has increased due to market shortages and because some investors are using the current market situation to buy property”.
The slowdown in the UK property market has also had an impact on average selling times with agents reporting that it’s taking slightly longer and becoming more complicated to complete sales this year compared to last – although properties are still selling.
“Current developments in the market, especially Brexit, are making things harder” reports an Estate Agent in an interview with Woozle in June. “Property is not not selling it is just more complex and takes slightly longer. The time to sell has increased from 10-12 weeks last year around this time, this year over the last three months it has taken around 12-16 weeks.”
The lettings market appears to be more bouyant in June although agents across the country continue to report industry and economic headwinds that has resulted in most telling us they expect to miss targets for FY2019.
“Demand for lettings has been slighly lower because house prices have remained roughly flat over the last year whilst lettings prices are higher” said a Lettings agent in London.
“Recent legislation (Tenant Fees Act) has placed the entire industry in an awkward position regarding lettings and it’s helping the cause”.
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This article summarizes choice quotes and insights from more than 50 interviews with UK Estate Agents in the last quarter that suggests further troubles for the UK property market as Brexit, weaker economic activity, and more regulatory and tax pressures cools outlooks for FY 2019.