As we reach the end of October, the UK property sector remains stuck in the doldrums despite further signs of prices regaining their footing.
Nationally, values rose 0.4% month-on-month in August and held steady in September. The latest October figures are expected to show a modest uptick as well. But activity levels remain depressed, with annual transactions still around 15% below historic norms.
In London, prices fell another 1% in Q3 as the top end of the market continues struggling. By contrast, the North West keeps powering on, with values up 6.9% annually in October across the region.
Here in Essex, the mood has brightened slightly, with prices rising 1.2% month-on-month in September. But sales volumes remain lacklustre, down 9% annually in Q3.
Mortgage rates are at near historic lows, with sub-1.5% 2-year fixed deals on offer to support buyers. But economic uncertainty prevails and many are staying cautious until greater clarity emerges.
While prices are stabilizing from a soft first half, the missing ingredient seems to be catalyst needed to spark a sustained rebound. Buyer demand remains fragile and sales volumes muted.
Perhaps the rumored government measures like stamp duty reform could provide the boost the market needs. Let's hope more proactive efforts get taken soon to revitalize the property sector as we head into the new decade.
The sense of hesitation that has permeated throughout 2019 shows little sign of abating. For now, the housing market continues playing a waiting game unfortunately.
Comments