UK house prices rising because of fall in supply
According to the specialists, UK house prices are tipped to fall or at least experience a fall in the rate of growth. There has been a consistency to property predictions in the UK of late and the tips for 2018 made grim reading. This is why figures provided for January 2018, by the Nationwide, have caused some shock. The Nationwide’s chief economist has expressed surprise at the movement at the start of the year but at Liberty Gate, we believe there is a very strong reason for the way the UK property market behaved at the start of January 2018.
January 2018 was better than expected for many
Some of the key highlights of the Nationwide figures for January 2018 include:
- House prices in the UK rose at the fastest annual pace for 10 months
- Average price of property in UK in January 2018 was £211,756
- Property values rose by 0.6% from December 2017
- Annual growth level was 3.2%, up from 2.6%
Many factors influence the property market
When it comes to property predictions, elements like Brexit and a lack of real wage growth led many property specialists to state that prices would start to slow or fall. However, there is still a notable lack of supply of property in the market, and this is a factor that continues to shape the market. When there are more buyers than sellers, price rises to balance out the supply and demand. This is a basic rule of economics and it is one that has been influencing the property market in recent times.
At Liberty Gate, we know that the experts are still tipping slow prices and falls for the rest of the year, but the start of the year shows that there is still life left in the UK property market in the short term.