Published: 06/10/2023 By Allan Fuller
However, what we are seeing locally is more of an adjustment. According to official government statistics, average house prices in the UK increased by 0.6% in the 12 months to July 2023, down from 1.9% in June 2023.The same report for London gives a reduction of 0.8%.
An exercise on the Nationwide website comparing a London property value now of £800,000 the same property 10 years ago would have been £525,375.
Despite whatever grim economic changes might have occurred over the last 70 years for any given 10-year period you care to pick there will have been substantial growth in property values.
What has skewed the property market recently was a very rapid rise in activity, and therefore prices, between 2020 and 2022. Since then, rising interest rates and fear of worse to come has slowed demand. September’s halt to the bank rate rises has given hope to rates peaking, and then reducing as inflation drops back. Certainly, this is factored in by mortgage providers who are now offering better rates to lenders.
What we need to remember is that buying a property is first and foremost a home, it just so happens that it can also be a valuable long-term investment.
Those autumn leaves will be replaced in a few months by the fresh shoots of spring, and that could well be new growth of property as well.