UK house prices have fallen for the first time since June according to Halifax.
Between November and December, the average home in the UK dropped in value by 0.6%. That brings the average value of a property in the UK down to £225,021.
With some experts predicting the housing market will fall in 2018, this could be a clear sign that the slow down is already upon us.
Halifax’s managing director, Russell Galley, said: “The housing market in 2017 followed a similar pattern to the previous year. House price growth slowed, while building activity, completed sales and mortgage approvals for house purchase all remained flat. This has been driven by a squeeze on real wage growth and continuing uncertainty over the economy.”
However, it would appear that the national average is being held back by London, as many other cities are still seeing rising prices.
Chris Taylor, the managing director of property consultancy Regency Residential, said: “This decline in the market is mainly a correction where London is concerned, following years of unprecedented growth with many cities such as Manchester, Bristol, and Birmingham seeing record selling prices.”
Towns like Cheltenham has seen increases in house prices of 13% during 2017 so it’s certainly not all doom and gloom outside of the capital.
Brexit is continued to be touted as one of the main reasons for the de-acceleration of property values in the UK. The uncertainty about the future of the country is thought to be putting people off from making a major house move. Instead, many people are choosing to work on improving their properties instead.
Confidence in the economy, it seems, is always likely to be a major factor that affects the value of a house. Until Brexit has been completed, and we have a clearer vision of the future, we are likely to continue seeing the property market struggle.
