House prices are 3.4% higher than they were a year ago, according to the latest figures just released. The annual growth rate in the three months to August was higher than the 2.7% annual growth recorded in July.

The average UK house price is now £222,000 after property values climbed 1.3% between July and August. But house price growth is down from its peak of 10% recorded in March 2016. When you consider all that has happened in the last two years it is little wonder. For the expat investor, the reduced growth still represents good value as general savings accounts offer very little return on your money.

Prices were boosted last year amid a flurry of transactions ahead of the introduction of new stamp duty and tax changes to buy-to-let and second homes. While unemployment is at a 42-year low, experts say growth is being held back by low wage growth and rising inflation, which is putting pressure on household finances.

Expats are still flocking to buy in the UK with mortgage transaction numbers at their highest level since March 2016.

The lack of supply of homes for sale has constrained market activity and helped maintain prices. Stock levels on estate agents’ books are near an all-time low and new instructions have fallen for the 17th month in a row. Experts say house prices should continue to be supported by low mortgage rates and a continuing shortage of properties over the coming months. However, some experts are warning interest rates could start to increase at the turn of the year.

Expat mortgages.

If you are looking for a new or re-mortgage please do make contact and one of our fully qualified advisers will be happy to help.

The UK housing market is shrugging off concerns in the wider economy following the Brexit vote, compounding problems for many first-time buyers still wrestling with the strongest year-on-year price rises in the market.

There are more expat buyers and sellers in the wider market compared with the period around the referendum a year ago, with the number of sales agreed up by 6% in June 2017 compared with June 2016.

Expat prospective buyers are seeing a lot of sold boards on properties they would like to buy with over 35% of estate agents property stock now being sold subject to contract.

So, a year on from the shock referendum result and subsequent dent in activity levels, the fundamentals remain strong and the future looks very positive indeed.

Low unemployment, low interest rates, strong demand and historic undersupply of homes are mitigating any wobbles in confidence. As a result, nearly half the properties on the market have sold signs on the boards.

The monthly survey, which is calculated on asking prices rather than completed transactions, comes at a time of year when the property market is typically quiet, as expat buyers and sellers take a break from the spring selling season and households concentrate more on holidays than house buying.

Data shows that the national average asking price for people buying their first home has dropped by 1.7% since last month to £196,000, but that figure is still 3.8% higher than a year ago, while the expat first-time buyer sector is the highest riser in the market during 2017.

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If you are looking for a new or re-mortgage please do get in contact and one of our fully qualified advisers will be happy to help.

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Expats still suffering bad returns Expats living overseas are still suffering low returns on their longer-term cash investments. So, what does the future hold?