Despite economic insecurity and turmoil, the housing market remains a show that must go on. Brexit may be leaving many of us feeling uncertain about what the future holds, but is it really impacting house prices as much as we think? The answer? Yes and no. Property developers and regular homeowners alike can rejoice in the news that house prices are rising in parts of the UK. So, if you have a property you have been fixing up ready for a quick sale, now might be the perfect time to do so.
Which Regions are Experiencing Price Increases?
In good news, house prices across the UK rose by 1.4% over the past year. However, there are some areas that have seen more improvements than others. The market has slowed down considerably in recent months, and we can blame the political climate for that, but people still want to move, and there are areas that continue to see price increases.
The North is actually doing quite well this year in terms of house prices, and there have been increases across the region, especially in Yorkshire and the Humber where there was a lovely 3.6% boost. Northern Ireland also saw a nice increase of 3.5%, while Scotland shot up by 3.3%. These are quite nice increases, so it might be worth investing in the North for property renovations and sales this year.
Wales is also doing exceptionally well, which is surprising to many based on past numbers. The house prices there have actually risen by 3% in the past year, making for a tidy profit. The West Midlands has had an increase of 3.4%, and while the East Midlands are also doing well, it is not as high as the West at 2.9%.
The Southwest has seen a good increase of 1.3%, but nothing compared to the numbers in the North of the country. Interestingly, the East of England has seen neither an increase nor decrease; leaving it a very stable area to be in. This is not necessarily great news for developers, but at least it hasn’t gone down in value.
Which Regions are Experiencing Price Decreases?
It’s no surprise that the house prices in London are continuing to fall, and it is likely to remain that way for the next year or so. Over the past year, we have seen a decline in value of 1.9%, which is fairly substantial. Of course, this is an overall result, and there are some property types, as well as zones, that are more immune to this than others.
Kensington and Chelsea are actually the areas that have been impacted the most, which comes as surprising considering their massive international market. They dropped by 16.4%, and homes in the Westminster area declined by 14%. However, homes in the City of London Borough saw a respectable increase in value of 16.2%.
The areas in outer London tend to be the most popular for first-time buyers, and given the market is not great for them at the moment, it’s easy to understand why they also felt the pressure. Prices in these areas dropped as high as 4.1%. There are some boroughs that benefitted from an increase, however, such as Merton and Newham which jumped up by 4% and 5% respectively.
The North East has not done as well as the rest of the region, which is disappointing news for those in the area. For them, house prices have seen an unfortunate decline by 0.8%, which is not massive but also not ideal either. Along with the South East, who have declined by 0.4%, and the London area, these are the only zones facing a price decrease.
Which Property Type is Selling Best?
The type of property you are selling has an impact on the price as well, and it is just as varied as the regional differences. Let’s take a look at the different types of home and how they are faring in terms of value.
These actually have the biggest price increase according to UK government records, which is fantastic news if you are looking to sell. Over the past year, the value has increased by 2.5%, making for quite a tidy profit at the end of it.
The detached home is a close second, and has had an overall increase of 2.1%. Again, brilliant to know if you are selling one. These are some of the most desirable homes as well because they are more private than semi-detached properties, therefore you should see a quick sale.
These have not done so well, and while there has not been a decrease in value, the increase is quite weak. 0.3% does mean that you will end up with a little extra by the end of it, but it’s nothing to get excited about. This is likely because terraced homes are not as desirable.
Flat or Maisonette
These properties have done the worst out of all of them, and they have decreased in value quite significantly. A reduction of 0.8% will cut into your earnings and may even leave you at a loss, depending on what you paid for it. The reason for this is likely due to the fact that the market is currently hostile for first-time buyers, and unlikely to improve soon.
Who is Buying?
This is the question; what kind of buyers are purchasing properties at the moment? It’s good to know what the market looks like, and so we have gathered the latest information direct from the government website to help you get a better idea of what to expect.
Cash buyers have actually increased by 1.7% over the past year, but that number looks to be declining as the months go on. By the time we reach Brexit, it could see a decrease of 1% depending on the market and economic status.
Mortgages are also on the rise at 1.3%, which is about normal. Again, this number appears to be declining as the year progresses; keeping in tune with the slowing market. As with everything, the result of Brexit could have further impact on this figure.
First-time buyers are in decline by 1.3%, and this is likely due to the unfavourable market that we have mentioned before. Of course, this number could change for the better depending on the climate later on in the year. However, it is not looking great.
Former owner-occupiers are also down, but only by 0.8%. This is not a particularly worrying figure, although it is down 0.8% when compared to last year’s buyer records.
What Does the Future Look Like?
There is still a lot of uncertainty in the housing market, and Brexit looming over us doesn’t help a great deal. There has been growth this past year, but that doesn’t mean things are getting better. When looking at the government website, they state that overall house prices have risen by 1.7% in the past year, which does look pretty good.
However, this is also in comparison to an increase of 2.2% the previous year. In fact, the 2019 house growth rates are the lowest since 2013, where they were a mere 1.5%. While it is good to see the increase for 2019, our advice would be that if you plan to sell it should be this year; preferably before October. This is because October is when we are likely to leave Europe and will be left with a greater sense of economic uncertainty.
Tips and Tricks for Selling Your Home
The market might not be ideal for everyone, but there are ways you can try and sell your home faster. To help you along, we have a few top tips to give you the boost you need to really get started. Take a look and see if they are helpful to you:
- Get your property valued by multiple estate agents so that you are able to set an asking price that is both realistic and beneficial to you.
- Check to see which estate agents have had the most success in your area to boost your chances of a sale.
- Splash on a new coat of paint and tidy up any areas that need repair before you sell. People want to move into a new home most of the time, not a renovation project.
- Baking cookies before people come and view the home; it helps to increase the chances of a sale because it already feels inviting and like home.
- Use good lighting for your photographs, and check the ones the estate agent takes first to ensure they are flattering.
- Make sure you have your finances and mortgage approvals in order. Buying a home is a chain, and if you are not ready, you could end up breaking it.
For most of the UK, there are actually house price increases, which is great news for sellers of all backgrounds. The housing market may be slow at the moment, but if you are ready to sell it is worth getting it up there and ready now. After all, you never know who might be interested in purchasing it. The future might be uncertain for us in terms of economic stability and growth, but we might as well make the most of what we have right now.