Figures from Halifax have shown that the UK residential property market has showed signs of slowing down, which Simon Morris thinks could be significant going forward.
Simon Morris, the Residential Property Expert
As an independent, London-based property specialist, Simon Morris advises UK property investment funds on how to maximise revenue on every type of property; commercial, residential etc.
When it comes to residential property – which yields profit through sales and rent – one way to determine how lucrative the residential market is set to be going forward, is to keep track of average house prices. This is why Simon believes these latest figures from Halifax are so important.
UK House Price Growth Momentum Slows
According to the Guardian, new data from Halifax has shown that average UK house price rate growth has gone down. This follows a seven month high in July, which was prompted by a recovering economy, better job prospects, low mortgage rates and improving consumer confidence.
The average price for a house in the UK, according to Halifax, right now is £186,270. This is 0.1% higher than in August, and over the year, means house prices are 9.7% stronger. However, it’s a lower growth rate than that measured a month ago; 10.2%.
The Balance of Supply and Demand
Martin Ellis – housing economist at Halifax, spoke out on the figures. Ellis suggested that the market has been strengthened by improvement in housing supply, which means that more properties have gone on sale with higher numbers new homes in particular.
Ellis went on to comment that “these trends, if sustained, should help to improve the balance between supply and demand, contributing to an easing in the pace of house price growth.” He further suggested that expectations of an interest rate rise from the Bank of England have also slowed demand down.
The UK Residential Market Has Stabilised
In Simon Morris’ experience, such a development is natural. The housing market has skyrocketed this year, so of course it has stabilised; it was always bond to at some point. It does however suggest that commercial property might be more lucrative in for UK property investment funds right now. As Simon has shown, commercial property is set to be profitable in 2014.