UK HPI: House price growth hits 7 year low but new builds are keeping it afloat
Director of Benham and Reeves, Marc von Grundherr, commented:
“Yet more reason to speculate on the downfall of the once impenetrable UK property market as price growth slumps to a seven-year low, predictably driven by sharp drops across London and the South East.
However, there is a seasonality at play and this can’t be discounted despite wider market conditions and although we edge closer to political chaos by the day, the price of property continues to creep up regardless.
The market may be in a comatose state at present, reliant on the affordability of mortgage rates and the aspirations of first-time buyers, but we’ve seen its rate of recovery before and there’s no doubt that we will soon see it again. In the long-term, the market will maintain good health and this current lethargy will soon be forgotten.”
Founder and CEO of Stone Real Estate, Michael Stone, commented:
“Continued market uncertainty coupled with a seasonal downturn makes worrying reading on the face of it but when you segment the market by region and property type, there are plenty of positives to take.
Despite wider doom and gloom, the new build sector continues to thrive, driving the market forwards with prices registering strong growth on an annual basis compared to the existing market.
Unlike the existing market, the new build sector is not obstructed by home seller emotion or hesitation over Brexit and so the consistent demand being seen is actually converting to sales rather than falling short at the offers stage.
Not only this, but the new build sector is delivering the three-bed property stock that many family buyers are looking for and with an absence of these sellers across the wider market, many are opting to spend a little more and invest in a new home now, rather than an existing property further down the line.”