Housing market slowing down
29/07/2014
The UK housing market finally appears to be slowing down as seven of the 10 regions in England and Wales recorded a month-on-month fall in house prices, according to the Land Registry.
However, despite price reductions in more than half of the regions in England and Wales, the overall average house price remained unchanged from May to June 2014.
The data showed that the biggest fall was in Yorkshire and Humber, as prices fell by 1.3% in June. In contrast, house prices in the Midlands helped to offset price falls in other regions, as they exhibited an increase of 1.9% for the month.
Annual house price comparisons have also begun to surface recently, showing the year-on-year change in prices from a point in time when the housing market was showing strong, consistent signs of recovery.
All regions in England and Wales have exhibited an increase in house prices over the last 12 months, however some areas have been staggeringly stronger than others. For example, London has show the strongest growth, as prices increased by 16.4% in the region, whereas prices in the North East only grew by 0.8% over the same time period.
Overall, the average property price across England and Wales was recorded at £172,011 at the end of June, which is still 6.4% higher than a year ago.
Confidence affected
Whilst there are a number of reasons for the market slow down, which include the summer being a historically quiet period for house sales, some have pointed to other potential causes.
For example, Jeremy Leaf from the Royal Institution of Chartered Surveyors said suggestions of a future rise in interest rates by the Bank of England may have affected consumer buying confidence.
However, despite this, he said that there are still people looking to buy, so the market should continue to steadily grow in the long term.
Need financial advice?
If you have any personal finance questions related to this news article, then please contact our financial advisers. You can get in touch by asking a question online, calling us on 0800 092 1245, or by arranging a visit.
Share this..
Related stories
HSBC looking to cash in property assets
Last year's repurchase of its Canary Wharf headquarters saw HSBC bank profits of around £300 million after originally selling the property for £1.1 billion in a leaseback agreement in 2007. It is rumoured that HSBC is looking at selling a portfolio of property assets held by the group with the intention of raising around £2.5 billion to assist with the funding of the business. The bulk of the t...
Read MoreHouse prices hit two and a half year low
House prices across the UK have hit a two and a half year low with average year on year price falls of 7.3% but the bad news for home owners is that the situation is likely to get worse before it gets better. Recent figures also show that the supply of new homes in the UK has almost dried up which was expected but is a worrying sign for the UK's house building sector which faces another testing p...
Read MoreUK property sales collapse to 30 year low
News that house sales in the UK have fallen to their lowest level for 30 years has sent shock waves through the estate agency sector. Reports that some estate agents are just selling one property a week seems to suggest that we are nearing crisis point in the sector. Companies going under and job losses seem to be firmly on the agenda unless there is a substantial bailout of the sector such as t...
Read MoreTaylor Wimpey given more breathing space by lenders
Taylor Wimpey, one of the U.K.'s best-known and largest housebuilders, has this evening been given until 31 March to sort out its finances and get the company back in order. Recent discussions with the company's financing partners have concluded with an agreement to review the company's balance sheet and debt structure no earlier than 31 March 2009. Like so many in the industry Taylor Wimpey has s...
Read MoreReality in the UK property market
A report by the Centre for Economics and Business Research will this week show that UK property prices are forecast to fall by a further 10% during 2009, ruining hopes of a short-term recovery. However, the Labour government will be pleased to hear that the report will also forecast a recovery in 2010, possibly just in time for the next general election. Slowly but surely it appears that Gordon Br...
Read More