Are House Prices Falling?

Well according to recent data released by Halifax the answer is yes. However, it is a touch unreasonable to pigeon hole the entire UK housing Market into one, all encompassing, sweeping statement of fact. The UK housing market is a wide array of micro markets that spread the length and breadth of the Country. What is happening to house prices in Knightsbridge will likely have no baring or correlation to what is happing in Doncaster. However, as a general trend, taking the entire UK into account house prices may well be falling. 

After about 6 or 7 years of sustained growth is that such a bad thing? All markets tend to experience down turns at various points. It would be actually be far more worrying if after 6 years of growth, with a general election on the horizon and the UKs exit from the European Union looming, if house prices continued to grow. 

For some time, the affordability matrix has been stretched, as house price growth has outstripped wage growth year on year. House prices have been stimulated for some time by record low interest rates on residential mortgages. This is still a very attractive carrot for potential buyers who can reduce their monthly outgoings through home ownership versus renting a like for like property. 

There has been little real evidence, in my opinion, of house prices falling in east London postcodes. Demand from buyers is still strong and there is no oversupply of property on the market. I remain confident that when the general election is over the market will once again be stimulated into life and there will be a noticeable increase in transactions.