In a Nutshell - 28th July 2016

In a Nutshell - 28th July 2016

Brexit Britain's House Prices grew last year

Houses in Britain grew in value by £2,400 in the month to June 2016, despite EU referendum jitters and the stamp duty levy.

The added value equated to 8.1pc in the year up to an average of £211,230

The figures, released by the ONS, will reassure those in the property market, who can take solace in the fact that property held up in the face of adversity in the lead up to significant changes in the sector.

The increase of £2,400 (1.1pc growth) was bigger than in both April and March, though it was understandably driven by price growth in the South East and London.

The new ONS figures - released in partnership with the Land Registry - is a month behind other leading indices like Halifax and Nationwide. Therefore, the EU referendum result will only likely be documented and realised in results published later in the year.

Source: This is Money

More cheap mortgages on the way

Moneyfacts have reported that mortgage rates fell in the first half of the year and will continue to do so.

Their figures also show that more people are relying on private landlords to rent a property

Moneyfacts said that those looking for a mortgage now would be substantially better off than they would have been if they had searched for a mortgage six months ago

David Hollingworth at Mortgage broker London & Country said: "Mortgage rates are astonishingly low at the moment. Anyone that has failed to review their mortgage recently should really take another look as there could be an opportunity to slash their mortgage payments by switching to a new deal."

However, first-time buyers are still struggling to raise the funds required. The  government's recent housing survey supports this, showing that the number of first-time buyers has fallen from 857,000 in 1995 to 564,000 in 2015. The average first-time buyer's age has increased from 30 to 33 in that time.

Source: BBC

CEBR: Prices will rise in 2017

The Centre for Economics and Business Research has said that houses will increase in value by roughly £40,000 by 2021.

They also forecasted that house price growth in 2016 will reach 5.7pc, and will rise a further 2.2pc in 2017.

This will take average house price to £234,000 by 2021, with a 3.9pc growth that year, according to Nationwide.

Robert Gardner, Nationwide's chief economist, said: "Housing market transactions were always likely to soften over the summer after the surge in activity in March. Determining how much of the [end-of-year] fall-back in activity is the result of the Stamp Duty levy, and how much is due to the referendum, will be difficult."

The CEBR forecasted a big decline in London prices - down 5.6pc in 2017, but recovering to annual growth of 6pc by 2021.

Source: This is Money

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