Property will always be an attractive investment opportunity. Unlike shares or stocks, buying a home provides you with a tangible asset which is incredibly likely to increase in value over time, regardless of any ongoing political uncertainty. Despite the prolonged Brexit negotiations having a profound impact on the property market, this could be a fantastic time to finally become a homeowner.
After all, the government recently committed to building 300,000 new homes every year until the mid-2020s, while the hugely popular Help to Buy scheme is helping young buyers take their first steps on the residential property ladder. For buyers hoping to settle down somewhere in the long-term, you certainly shouldn’t feel put off by any niggling Brexit doubts.
However, as with any type of investment, you’ll undoubtedly want to feel confident in eventually turning a profit, and there’s simply no denying that Brexit is causing a great deal of hesitancy throughout the market. If you’re hoping to buy a new home in 2019, then you’ll need to know how house prices have been affected and which parts of the country have continued to thrive.
What is the Average House Price in the UK?
The latest figures from the Office for National Statistics (ONS) show that the average UK house price was £226,000 in February 2019. Although this is a drop of £6,000 since property values peaked in August 2018, it’s certainly worth noting that, despite the endless Brexit gloom, this figure is actually £1,000 higher than the same time last year.
Are House Prices Falling?
The true impact of Brexit remains completely clouded in mystery, and this cloud won’t begin to dissipate until the manner of Britain’s exit has finally been decided. Although there’s still some disagreement, most property experts and commentators agree that a hard Brexit could prove much more damaging than leaving with a deal, for example.
Of course, it’s exactly this kind of uncertainty which is causing buyers and sellers to hesitate, with many remaining unsure of whether to stick or twist before the future has become clearer. When the market is hampered by such hesitancy, it’s only inevitable for house prices to feel the impact eventually.
According to the latest ONS figures, house prices in the UK rose by an average of just 0.6% in the year to February 2019, marking the slowest growth rates for more than 6 years. Additionally, these figures showed that the average house price had actually fallen in price by 0.8% over the previous month, with Brexit uncertainties having a growing influence on the market.
However, house prices are still growing, albeit at a much slower rate than we’d usually expect, and some parts of the country have actually seen substantial growth over the last 12 months.
Where are UK House Prices Growing the Fastest?
The national slowdown in house price growth has largely been attributed to areas in the South East of England, which seem to be bearing the brunt of the ongoing Brexit uncertainty. Prices in this part of the country have fallen by 1.8% in the year to February, while London properties have dropped by as much as 4.8% during the same time period.
In the northern parts of the UK, however, house prices are continuing to grow at an impressive rate, especially when you consider the current political situation. Although there are many other factors to consider, these areas will certainly prove incredibly appealing to those looking to buy a home this year.
The figures from ONS show that house prices in Wales have risen by a whopping 4.1% in the year to February, with prices rising by 0.2% over the previous month. This impressive growth coincides with the introduction of Land Transaction Tax, which has significantly reduced stamp duty for those buying property in Wales.
Coming in just behind Wales is the North West of England, which has seen house prices rise by 4% from February 2018 to February 2019. According to figures from Rightmove, house prices have since jumped a further 2.2% in the following month, with areas around Manchester seeing growth of 15% since the 2016 referendum.
Incidentally, growth in Manchester has only been bettered by one other city since Britain voted to leave the European Union. Prices in Birmingham have risen by 16% following the referendum, with growth in the West Midlands region at 2.9% over the past 12 months. Additionally, property in the East Midlands has risen in value by 1.6% in the same time period.
What Types of Property are Increasing in Value?
Despite such impressive growth in the areas above, the average homeowner is still understandably reluctant to sell up in such a stagnant market. For buyers, however, the struggling prices present a fantastic opportunity, with new build properties rising by 4.2% to £285,955 over the past 12 months.
House price growth also fluctuates between the various types of property developments, with semi-detached properties rising by 2.2% to an average of £215,632 in the past year, while detached houses have risen by just 0.8%. On the opposite end of the scale, the average flat has fallen by 2.8% in the year to February, with the average property valued at £197,693.
You can browse a selection of property right here at Blackmore Homes, as we provide exciting developments across the UK and bring you one step closer to finding your dream home. Take a look at our new properties today!