House price growth sluggish but homeownership continues to underpin the UK housing market
Property expert and Yomdel CEO, Andy Soloman, commented:
“A sluggish start to the year for the UK property market and one that has become all too familiar as the wheels continue to fall off of our exit from the EU.
Despite this lethargic market movement, the dream of owning our own homes continues to underpin the UK housing market as our resilience as a nation defies wider political influences to see homeownership rates continue to climb.
This has been supported by the continued affordability of mortgage rates and while prices remain fairly static, it is at least encouraging to see many continue to climb the ladder. With unemployment falling and wage growth on the up, we have all the ingredients required for a buoyant housing market, it’s just a case of sitting tight and waiting for the clouds of uncertainty to lift.”
Director of Benham and Reevers, Marc von Grundherr, commented:
“While sluggish, growth is growth and it’s great to see the market finding its feet so early in the year despite so much uncertainty still looming as a result of the B word. The year ahead is likely to be erratic but there is very much an appetite for homeownership that won’t be dampened by political uncertainty, and once this gloomy outlook breaks the strength of the UK market will become all the clearer.
London has been worst hit by political uncertainty with top-line indicators suggesting next to no price growth what so ever since the EU Referendum. However, if you think that dust is collecting on for sales boards across the capital and estate agency branches will remain under lock and key until a decision is made, you are sorely mistaken.
There is most definitely an undercurrent of activity across the London market and an air of opportunism amongst investors as despite a string of penalties against the buy-to-let sector, the London’s property market remains a very attractive proposition.
Not only is this the case in the investment circles but the number of first-time buyer mortgage approvals is up annually, along with the number of new home movers, so it would certainly seem the appetite for London living is starting to build once again.”