Latest reports suggest that UK house prices remained level in June – rising by just 0.3% nationwide, compared to the previous month. The average UK house price is now around £225,654, and the rate of growth over the first half the year indicates that things appear to be gently slowing down.

House prices in June were 1.8% higher than they were this time last year and for the three months from April to June, prices were 0.7% lower than they were during the same period in 2017.

Property experts are blaming the lacklustre property market on the continuing uncertainty swirling around Brexit – along with fears over an anticipated hike in interest rates by the Bank of England, due any day now.

Speaking to the Independent, CEO of Octane Capital, Jonathan Samuels suggested that the current lack of available properties on the market will stop house prices from plummeting, but for those who are keen to buy, there isn’t a lot of choice:

“For some time now, the UK’s property market has lacked both energy and direction and June has delivered much of the same. The chances of a rate rise have just increased and that is likely to dampen activity levels further during July.

“While the jobs market may be strong and mortgage rates still highly competitive, many households continue to feel the pinch and remain wary of the potential fallout from Brexit.”

Managing Director of Garrington Property Finders, Jonathan Hopper asserts that the imminent interest rate increase could actually help to revive the property market:

“The fear that the cost of borrowing might rise sooner rather than later could give many would-be buyers the impetus they need to commit, and inject some extra vim to a market which has proved stoic if not universally solid in the face of months of Brexit uncertainty.”

And Halifax M.D. Russell Galley said that Halifax is predicting overall growth levels will sit somewhere between 0 and 3% in 2018:

“Activity levels, like house price growth, have softened compared with the final months of last year. Mortgage approvals have been in the low range of 63,000 to 67,000 since the start of the year, whilst home sales have remained flat so far this year.

“This is in contrast to the continuing strength of the UK jobs market with job creation still strong and pressure on household finances easing as real income growth edges up.

“We continue to see very positive factors of continuing low mortgage rates, great affordability levels and a robust labour market, he continuing shortage of properties for sale should also continue to support price growth.”

So it’s slow, but it’s not going to freefall and anyone buying in current market conditions should feel confident that UK house prices are staying level and things are not going to alter dramatically over the coming months. Buying or selling your house? Get in touch to find out how we can help your move go smoothly.