The housing market has undergone peaks and troughs, with values in traditionally expensive regions dropping between 2017/18. The first quarter of 2018, specifically March and April, saw average house prices fall to their lowest in over 8 years. Overall, prices fell by over 3.1%, or nearly £221,000 according to a news report by Bloomberg.
The study by Halifax, part of the Lloyds banking group, demonstrated that the UK market is weakening. Meanwhile, consumer interest wanes due to a decrease in mortgage approvals overall. But while the first quarter is a poor start for the market, increases to the job market may redress this.
House Prices at 8-year low
Halifax also found that while mortgage approvals and buyer interest had depreciated. So too did the number of houses being placed on the market, contributing to a wider decrease in market value. For both London and the rest of the UK, the spring season is uncharacteristically quiet compared to other years.
“We are entering what is supposed to be the busy spring buying season, which tends to set the tone for the rest of the year.” – Jeremy Leaf, N. London Estate Agent (The Guardian)
Decreasing values are affecting housing across the UK, with London homes falling to prices of £430,000 or below.