The results of Halifax Property Price Index have shown Simon Morris that UK residential property values fell slightly from June to July 2015.
UK residential property market
The fortunes of the UK’s residential property price sector are on the rise. The Halifax House Price Index June 2015 found that UK house prices increased 1.7% from May – June 2015. It further showed that UK house prices expanded 3.3% from the first quarter of 2015 to the second quarter of 2015, and 9.6% from June 2014 to June 2015.
House prices dip 0.6%
Property Wire reported that figures the Halifax House Price Index July 2015 showed that the average UK house price fell 0.6% from June 2015 to July 2015. The Index further illustrated that the average UK house price only grew 7.9% from July 2014 to July 2015.
This means that according to Halifax, the average price for a house in the UK is now £198,883. The Nationwide House Price Index July 2015 similarly discovered that the average UK house price is now £195,621, with residential property values growing 0.4% from June 2015 to July 2015.
Stephen Noakes, the managing director of retail customer products at the Halifax, explained that this doesn’t mean that UK house price growth has slowed in the long-term. He said that “the underlying pace of house price growth remains robust notwithstanding the easing in July. Continuing economic recovery, earnings growth in excess of consumer price inflation and very low mortgage rates all underpin housing demand.”
Noakes continued: “Supply is highly restricted with the stock of homes available for sale falling further to new record lows. This combination of well supported demand and tight supply is likely to ensure that house price growth remains relatively strong in the near term.”
Advantages and pitfalls of buy-to-let
This may persuade investors that now is the time to take advantage of pension reforms and invest in buy-to-let residential property. However, property specialist Simon Morris would urge potential investors to be cautious, and do their research before pursuing this strategy.
The property expert would also advise those who are thinking of removing their pension as a lump sum to invest in buy-to-let to download his latest guide. This guide provides investors with the key information they need to determine if this is the right investment plan for their circumstances.