6th June 2017
UK Housing Prices Suffer Further Declines
UK house prices fell for the third month in a row in May, according to Nationwide, the first time this has happened since the financial crisis.
While Nationwide do not break down their index by region, other recent surveys have found that London in particular has seen falling prices, with that region seeing waves of new build property come to market.
Slowing demand from overseas thanks to concerns about Brexit may be having an effect, although at least as important was the change in the rules around buy to let last year. So, the Conservative Party’s assault on the English middle class’ obsession with speculating on houses may have been a ‘brave’ way to launch an election campaign, but it is worth remembering that it is not the first policy aimed at discouraging investment in residential property. Future governments of either hue are likely to look at ways of dampening down property prices as the younger generations grow into voting age unable to get on the ladder. Property may not be the sure bet for retirement saving it has seemed in the recent past.
Read this weeks full Market Commentary below.