Amidst all the turmoil of Brexit and economic uncertainty, it may come as a surprise that the UK housing market has actually seen some steady growth in the last year.
In November, the average house price rose by 0.5%, equating to an average house price of £215,000. This signifies the biggest rise in prices for one month since July 2018, and is 0.2% higher than the growth in October.
The annual growth has indeed picked up, and is now sitting at 0.8%, which is up from 0.4%, the highest since April of this year.
It still has a long way to go, however this is an improvement for the last few years. Ever since the 2016 Brexit vote, housing prices have been stuck below 1% growth levels, which is below the rate of inflation at 1.5% and below the wage growth of 3.6%. Prior to the Brexit announcement, housing prices were rising steadily with a growth rate of around 5%.
This scenario has created a bit of a standoff however, as the slight rise in housing prices has made them more affordable, but due to the uncertainty surrounding Brexit and the economy, potential buyers are hesitant to drop their money into property.
Amongst all the uncertainty of Brexit and the economic rut that we find ourselves in, there is also the UK general election coming up this month. Elections can usually be a turbulent time, however experts are saying that previous general elections do not always appear to have an effect on house prices.
However, this general election comes alongside much uncertainty and demand for action. Whether or not this is having an effect on the housing market remains to be seen and we may have to wait till Brexit and the election has clown over until we can properly assess the effects they have had on housing.
