Housing prices remain steady
When it comes to making a decision to invest in property, there are many things to consider, including location, price and timing.
Figures from the latest Office for National Statistics report might indicate that now is a great time to invest in property in England.
According to the August 2019 report, the average house price in England increased by 0.7% over the year to June 2019, remaining the same from May 2019 (0.7%), with the average house price in England now £247,000.
This is reassuring news for those concerned about how Brexit could negatively impact the housing market.
It also contradicts the view that property prices are being hampered by the continued political uncertainty.
House prices in England remain the highest in the UK, with the average UK house price now £230,000 (which is £2,000 higher than the same period a year ago (June 2018)), compared to £152,000 in Scotland and £137,000 in Northern Ireland.
This is reflective of the high demand for homes and indicates investing in property in England is a decision that will pay off economically in the long term.
Though these figures do not account for regional variation (e.g. prices are falling in London and southeast England – where they have increased dramatically in recent years)
House prices in England generally remain steady with no area booming and no area dramatically crashing either.
This provides confidence for buyers who want to purchase their first property or move house.
The mortgage market is also prospering.
Mortgage lending saw a solid rise in July, both in terms of the amount borrowed by consumers and the number of loans agreed by lenders.
So whilst Brexit is a consideration it does appear that buying property in England remains a popular goal.
This is good news, especially for younger people who now see an opportunity to own their own home, which has recently seemed impossible as prices increased faster than their borrowing power.
The general stability of the housing market is proving to be reassuring for potential buyers.
Buying a house is not a decision people make with tomorrow or next year in mind, and smart buyers are taking a long-term view on the market amid what others may see as a time of economic uncertainty.
Regardless of what kind of deal – if any – the UK leaves the EU with on October 31st, many UK residents are pressing ahead with purchase decisions in order to provide themselves with some long term security.
With record employment, low-interest rates and good mortgage deals available, buyers have a lot in their favour despite the lack of political certainty.
History tells us that property prices in England have generally increased over time.
Giving homeowners the opportunity to downsize in retirement and generate cash or pass sizeable assets onto family members – time will indeed confirm if 2019 was the year many more buyers started on this journey.