As the summer of 2019 passes its midpoint, the UK property market continues to display a degree of underlying caution, despite prices showing some recovery from a sluggish spring.
Nationally, house prices picked up pace in June with a monthly rise of 0.7% following a mostly flat period earlier in the year. Leading indices suggest July has brought further gains for values across the country. However, the London market remains subdued, with prices in the capital falling 0.7% in June as buyer demand stays muted.
Regions like the North West have been outperforming, registering 6.4% annual price growth in July. Other areas such as Wales and the Midlands are seeing solid yearly increases between 2-3%.
In Essex, prices rose 0.9% month-on-month in June. However, there is still an overriding sense of hesitation among buyers, with transactions down 8% annually amid broader economic uncertainties.
While mortgage rates continue to support buyers, staying near historic lows with sub-2% fixed rate deals widely available, many still seem wary of committing to major purchases.
Overall, while showing some positivity this summer, the property market mood remains relatively downbeat and activity looks set to stay below historic norms until confidence returns.
Let's hope the economic outlook becomes clearer in the coming months. The housing sector stands ready to rebound more strongly once some of the clouds lift and optimism returns among both buyers and sellers.
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