UK house prices make a miraculous recovery amid political turmoil

December 12, 2019

The latest research suggests that Britain might be leaving stagnant house price growth behind in 2019.

The UK has experienced an extremely turbulent year, with political uncertainty directly correlating to record-lows in the growth of the housing market. In October, house prices were almost motionless as property inflation remained below 1 per cent for 11 consecutive months.

However, it seems like the property flatline might be a thing of the past. Despite the uncertainty surrounding Brexit and the general election, Halifax states that house prices bounced back in November.

Last month, the average price of a home increased by 1 per cent £234,625 which accounted for the largest monthly growth since February. House prices are now 2.1 per cent higher year-on-year thanks to this slight recovery.

Also, statistics from HM Revenue showed a 4.3 per cent increase in UK home sales in October when compared to the previous month. The recorded amount of sales stands at 103,680 which is still the highest number of transactions since July 2017.

Halifax believes that the housing market will remain on the path of making “modest gains” as we enter 2020 after calculating that prices have grown by approximately £3,904 since January.

The managing director of Halifax, Russell Galley, said: “While a degree of uncertainty remains evident, it’s also clear that buyers and sellers are responding to factors such as improved mortgage affordability and the limited supply of available properties.”

He continued: “It is these issues which we believe will continue to underpin the resilience evident in the market for most of 2019. Over the medium term we expect the emerging trend of modest gains to continue into next year.”

Other market experts agreed that house prices are still on the increase; gov.co.uk estimated an annual price change of 1.3 per cent, Nationwide reported an increase of 0.8 per cent, while Rightmove released data suggesting an increase of 0.3 per cent.

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