The annual houses prices grew by 5.2 per cent during August-September-October 2016 in the UK when compared to the corresponding period last year, according to the latest Halifax House Price Index. Though there were concerns about a dip in the house prices, the growth remains stable year-on-year but not on a sequential basis.
From March 2016 onwards, there has been a slowdown in the growth of house prices in the UK. In March, it had reached a high of 10 per cent. But the slowdown in the growth of house prices is unlikely to remain a long-term trend owing to shortage in supply of completed homes entering the market.
According to the House Price Index, sales of homes have broadly stabilized in the last three months. The quantum of mortgage approvals for purchase of houses has also stabilized in the last 90 days. However, on the house supply side, the stock is at a historically low.
It is an appropriate time to invest in homes in London and elsewhere in the UK for a long-term return-on-investment. The value of houses as well as rental growth is appreciating at a stable rate. If you are interested in acquiring a property in London, connect with our estate agents by calling Strawberry Star office for more information.
Home sales, however, appear to have stabilised in recent months following the distortions earlier in the year due to the changes to stamp duty in April