UK property market is heading into a period of much lower growth overall according to Home.co.uk (API) report
The Home.co.uk Asking Price Index (API) report May 2017 released today headlines ‘London Prices Down but Most Regions Performing Well’.
Home prices up overall by 2.8% year-on- year, however greater London prices down 1.6% year-on- year (down around 5.0% in real terms).
Doug Shephard Director at Home.co.uk said: “The UK property market is heading into a period of much lower growth overall. The national growth figures will remain muted due to the poor performance of London, which could last for some considerable time.
“However, investors both large and small are busy adding to their portfolios in higher yielding regions, and this is keeping prices buoyant and adding to market momentum in most regions outside of London and the South East.
“Indeed, prices are rising in the East and West Midlands and in the South West at a moderate and more sustainable rate than we observed previously in London and the South East. For now and the near future these regions are the saving grace of the UK property market: without their performance the national figures would look truly terrible and could precipitate a loss of confidence in the market as a whole. Moreover, it is pleasing to see increased activity in the northern regions, not one of which has seen the average home price rise by more than 10% over the last seven years. Hence, aside from some of the best yields in the UK, there is plenty of room for capital growth and investors, above all, understand that.
“Rents, of course, fundamentally underpin house prices and the regions to watch are Wales, Yorkshire and the West Midlands (up 11.5%, 9.2% and 7.8% YoY respectively). We expect considerable buy-to-let investment in these locations going forward”.
Read the Home.co.uk Asking Price Index May 2017 in full click here.