The UK Housing Market Appears To Be Riding On Quick Sand

What is going on with the UK housing market? A recent study conducted by Lloyds Bank shows a sharp decline in home purchases in select areas of the region. Lloyds Bank show statistics where some areas in the UK are seeing transaction numbers 30 percent lower than that of the period right before the financial crisis. In particular, the community of Brent in the northern part of London experienced home sales decline by a third last year. Berkhamsted in Hertfordshire also saw completed home purchase transactions decrease by a third in 2016. It is quite interesting to see such decline in sales in Brent and Berkhamsted since these areas are considered affluent communities. Essex and six other nearby London boroughs were also counted among those with underwhelming home sale numbers in 2016.

Sales Increased

Although several wealthy neighbourhoods have suffered in the field of home sales, a few communities in England and Wales have thrived during the past twelve months, which may be good news for the top lenders for 2017. Northwest areas along with regions in the Midlands have attracted enough buyers to show improvements in statistics. Retford in Nottinghamshire actually saw one of the greatest increases in homeownership since 2006 last year. Cannock in Staffordshire and Nelson in Lancashire also experienced a significant increase.

What Is Going On?

Overall sales in the UK may be on the decline but home prices are steadily rising. Areas that have improved numbers in the home buying department suffered the most during the financial crisis. It makes sense, then, that these communities would be on the rise since they have not reached the climax of their recovery like more affluent neighbourhoods may have during this period of stagnation. Meanwhile, valuations continue to rise in Wales, London, and throughout England.

What is interesting with the UK market is that even though home sales are declining, the demand for property continues to outweigh the supply of homes on the market. This phenomenon points to the notion of buyers living within their means by avoiding expensive mortgages and waiting for homes that are within their price range.

While recent activity appears troubling, such precautionary measures could actually lend positive results. Buyers who overextend their budgets find themselves on the verge of default and foreclosure that negatively impacts the economy in a big way. Buyers who are frugal, however, ensure that they are in their home for many years, which in turn guarantees residual income for the economy. The UK housing dilemma may actually be the making of consumers learning from previous experiences and vowing to improve in the area of financial prudence.

EAN Content

Content shared by this account is either news shared free by third parties or sponsored (paid for) content from third parties. Please be advised that links to third party websites are not endorsed by Estate Agent Networking - Please do your own research before committing to any third party business promoted on our website. As an Amazon Associate, I earn from qualifying purchases.

You May Also Enjoy

Breaking News

Revealed: the most lucrative shared living postcodes

New research from COHO, the HMO management platform, reveals that the shared living market in England & Wales generates an estimated monthly rental income of £1.4bn. But which postcode areas are creating the most income from shared living? How much are HMOs making in your postcode? Find out here COHO has analysed the estimated number…
Read More
Breaking News

Mortgage approvals continue to climb in June

The latest mortgage approval data from the Bank of England figures show that: – Mortgage approvals on house purchases for June sat at 64,167 up (+1.4%) from 63,288 in May. This signals two consecutive months of growth. Approvals are also up (+5.6%) when compared to the 60,761 seen in June 2024. This growth is positive,…
Read More
bank of england interest rate
Breaking News

Bank of England Money & Credit Report June 2025

Net borrowing of mortgage debt by individuals increased by £3.1 billion to £5.3 billion in June, compared to a £2.8 billion increase to £2.2 billion of net borrowing in May. Net mortgage approvals for house purchases increased by 900, to 64,200 in June. Approvals for remortgaging also increased by 200, to 41,800 in June. This…
Read More
Breaking News

Housing market’s summer surge dampened by soaring stamp duty costs

Housing market activity has surged, with buyer demand up 11 per cent and agreed sales up eight per cent year-on-year, defying typical summer slowdown National house price inflation has slowed to 1.3 per cent, driven by a 12 per cent increase in homes for sale and higher stamp duty costs for many buyers Higher stamp…
Read More
Rightmove logo
Breaking News

Rents reach another new record as tenants pay £400 more than five years ago

The average advertised rent of homes outside of London has risen to another new record this quarter of £1,365 per calendar month (pcm), but the yearly pace of rent growth continues to slow: London rents also reach a 15th consecutive new record of £2,712 pcm this quarter Five years on from the pandemic, new tenants…
Read More
Breaking News

Six UK vineyards where homebuyers avoid the 84% premium

Six affordable UK vineyards where homebuyers avoid the 84% house price premium and toast a better deal The latest research from Yopa has revealed that living close to one of the UK’s top vineyards will set homebuyers back an average of £494,739, 84% more than the current UK average house price. However, there remain a…
Read More