The terms ‘stable’ and ‘subdued’ were the comments used by Halifax and Nationwide in their relative House Price Indexes this month.
Halifax reported a 0.3% decrease from the previous month but an average annual growth of 5.7%, with average UK house prices sat at £237,110.
Nationwide conversely reported a 0.1% increase from the previous month and only a 0.5% annual uplift from the previous year with property prices stood at £216,515.
What never ceases to surprise me is how two national HP Indexes can present such a dichotomy. What is positive, dependent on your outlook on the Housing Sector, is that on an annual basis property prices in both reports show an increase year on year.
Illustration from Rightmove House Price index
As to be expected, over the last year certain areas have performed better than others, but it’s positive to see how Yorkshire and the Humber has seen an uplift. Just how much of this is down to market sentiment, however? Well as per the bar charts below taken from the RICS HP Index, they reported a continual drop in new buyer enquiries as well as new vendors instructing sales to the market in Yorkshire and Humber.
The above tells us that there is still less stock on the market for sale but also fewer potential buyers registering interest so one would normally expect a cooling in the market. However, with property prices still on the rise, are we to expect property values across the counties to hit a crescendo and is this a forecasted sign of things to come?
So, what’s the latest in the York property market? Well latest average property prices according to Land Registry now stand £257,913, a 0.78% increase from last month and 5.79% uplift from 2018.
I will say this, it’s a tough time for all you York landlords now with adverse tax changes, increasing legislation, and increasing costs. However, I’m pleased to report that the capital growth in your York-based asset has brought you on average an extra £14,100 in the last 12 months.
Other than the fantastic fundamentals that York has to offer, one of the main reasons for this continual rise in property prices is simply lack of housing stock. The issue I find with government policies regarding banning Section 21 notices, potential three year tenancies and rent caps etc is that (other than vote-scoring tactics) is they are only short-term moves which aim to solve a long-term problem, illustrated originally by the 2004 Barker Report stating that we need to build at least 250,000 homes per year in the UK to satisfy demand.
With interest rates still low, lending is cheaper than ever, and property is too lucrative an investment strategy especially in York with the above figures in mind. In short, there is seemingly only one panacea to stabilise house prices in York and I’m sure you don’t need me to tell you what that is. However, if you are interested in finding out, pick up the phone and give me a call and I will happily tell you.