The Conservative government took another hit as statistics showed that the average asking price of a house in England and Wales.
The drop in asking prices was the first recorded since June 2009, with properties dropping an average of0.4%. In real terms, owners have seen their property decrease in value of just over £1000 according to statistics released by RightMove. However, the countries capital was the hardest hit, with a drop of 2.8%.
The drop in prices comes after Theresa May failed to secure a majority in a snap election. This has led to uncertainty throughout the economy which has hit property throughout the country. The south-east has been the worst affected area, with London as the epicentre. Whilst these statistics seem scary and worrying, perspective must be taken. Throughout the country, property prices are still up by 1.8% year on year. Furthermore, some northern areas have seen an 11% increase year-on-year!
These statistics beg the question, can we expected continuous property price growth? The obvious answer is, no. We may see a slight increase in line with inflation, but there will be a point where a critical mass is hit and growth grinds to a relative holt. However, this is (hopefully) not going to be for a while. If we look back over the property prices for the last twelve months, average asking prices have ebbed and flowed like a tide. They have increased during periods of prosperity (or even good weather!!) and they have dropped during times of uncertainty. As you well know, this is the way the property market works – there is no point in getting scared when one month shows a slight decrease in value.
Instead, one should try and look for the positives. Average property prices are still increasing year on year, first time buyer numbers have begun to increase once again and the building sector has increased its output. All this is good news for property holders.
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