New figures from Nationwide suggest that house prices in the UK fell 0.1% in February. Simon Morris explores what this could mean for investments in the residential property market.
Capitalise on the UK residential market at the right time
Simon Morris is a London-based property specialist who has been featured in online publications such as Yahoo Finance. In this capacity Simon advises UK property investment funds how to accrue profit from property-orientated investment portfolios.
Simon understands that the residential element of the UK property market can be highly lucrative for any UK property investment fund. Yet it only proves profitable if the fund in question capitalises on the opportunities it presents at the right time. The average UK house price can act as a valuable indicator of the long-term profitability of the UK residential market.
Average UK house price falls in February
According to the BBC, new figures from Nationwide indicate that the average UK house price slipped from £188,446 in January to £187,964 in February; a fall of 0.1%.
Meanwhile house price growth slowed to 5.7%. This is the sixth month in a row house price growth has declined and now it sits at its lowest since September 2013. Further figures from Nationwide show that the number of mortgages approved rose to 60,786 from 60,349 in December. However the total continued to sit below the average for the last half-year.
The housing market “is taking a breather”
Some experts have suggested that these figures indicate that the UK housing market has hit its peak and is beginning to fall into decline. Yet Rob Weaver, director of investments at the property crowdfunding platform Property Partner, suggested that these latest statistics could prove positive for the UK residential property market.
Weaver argued: “The market is taking a breather and is certainly not on the brink of a longer term decline. A return to steady growth is a good thing and should be welcomed.”
What could this mean for UK property investment funds?
Does Weaver have a point? In Simon Morris’ opinion he could do. Average house price values may have fallen in February but the market is still strong. Yet this decline does indicate that UK property investment funds may want to consider all options before choosing to invest in the UK residential property market.