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.
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.