Divergent picture in September as London cools but other regions perform well
September saw a mixed outlook in the UK property market, with property prices and lending activity maintaining their trajectory from August in some more buoyant areas, yet cooling in others. Last months’ headline data showed very little change from the previous month, however it’s likely that the regions that are currently seeing significant changes are ‘picking up the slack’ from those where prices have decreased over the last month. We observed marginal monthly movements on key indicators, including:
- Average purchase price in September, 17 0.8%lower than August 17
- Average remortgage loan size decreased in September 17 to £175,968, a 0.3% drop on the previous month
- Average first time buyer purchase price remains broadly unchanged month on month at £208,865 in September 17
Mortgage Advice Bureau (LON:MAB1) data is based upon mortgage applications, therefore this provides a reliable bellwether in terms of consumer activity.
Whilst some pockets of the UK, such as the West Midlands, Wales and East of England have seen significant rises both year on year and month on month, according to most recent reports from both Rightmove and RICS, growth in London seems to be slowing down, probably due to the increased levels of stock available together with new build completions, both of which are impacting on prices. The South East is seeing a similarly cooler picture, albeit to a lesser extent.
